Assistant Professor of Finance Todd Feldman in the News
News + Events : Assistant Professor of Finance Todd Feldman in the News
In this article about two powerful biases that influence individuals when making financial decisions—that we fear losses more than we like gains, and that we are affected more by recent performance than by long-term past performance—Finance Professor Todd Feldman offers his theory on why markets have been so volatile in recent years.
Both biases have always swayed the markets, he believes, but were limited by the amount of money that could be invested. “But now those constraints have been lessened because of the evolution of leverage and derivatives.” The Washington Post, 03/26/2011