AAII bull-bear
SentimentMulti
AAII Bull-Bear sentiment survey
Source: encyclopedia
Affect heuristic emotion
HeuristicsMulti
Affect heuristic - emotion drives judgment
Source: encyclopedia
Anchoring bias
HeuristicsMulti
Anchor on irrelevant initial value
Source: Abacademies
Animal Spirits Akerlof+Shiller
FoundationsMulti
Akerlof+Shiller Animal Spirits
Source: encyclopedia
Auto-rebalancing
StrategyMulti
Auto-rebalancing forces buy-low sell-high
Source: encyclopedia
Availability heuristic
HeuristicsMulti
Availability heuristic - recent salient info weighted
Source: encyclopedia
Backfire effect
ConfirmationShort
Backfire - contradicting evidence strengthens belief
Source: encyclopedia
Bandwagon effect
ConfirmationShort
Bandwagon effect follow crowd
Source: encyclopedia
Better-than-average effect
OverconfidenceShort
80% drivers think above-average
Source: encyclopedia
Bounded rationality Simon 1956
FoundationsMulti
Simon bounded rationality 1956
Source: arxiv
Buffett be fearful greedy
StrategyMulti
Be fearful when others greedy (Buffett)
Source: encyclopedia
Calendar anomalies
AnomaliesMulti
Calendar anomalies (TOM Halloween etc)
Source: encyclopedia
Closed-end fund discount
AnomaliesMulti
Closed-end fund discount anomaly
Source: encyclopedia
Conference Board confidence
SentimentMulti
Conference Board consumer confidence
Source: encyclopedia
Confirmation bias
ConfirmationShort
Confirmation bias - seek info that confirms
Source: encyclopedia
Contrarian investing Templeton
StrategyMulti
Contrarian investing - John Templeton
Source: encyclopedia
Cooling-off periods waiting
StrategyMulti
Cooling-off period before big trades
Source: encyclopedia
Crash herding panic
Herd BehaviorShort
Panic herding amplifies crashes
Source: encyclopedia
Crypto 2017 2021
BubblesShort
Crypto 2017 + 2021 bubbles
Source: encyclopedia
Crypto Fear Greed Index
SentimentMulti
Crypto Fear/Greed Index
Source: encyclopedia
Decision journals
StrategyMulti
Decision journals reduce hindsight
Source: encyclopedia
Default options auto-enroll
StrategyLong
Auto-enroll default leverages inertia
Source: encyclopedia
Diminishing sensitivity
Prospect TheoryMulti
Diminishing marginal sensitivity to gains/losses
Source: Lup
Disposition effect
Prospect TheoryShort
Disposition effect - sell winners early ride losers
Source: Abacademies
Dollar-cost averaging
StrategyLong
DCA mitigates timing mistakes
Source: encyclopedia
Dot-com 2000
BubblesShort
Dot-com 2000 bubble + crash
Source: encyclopedia
Earnings drift Bernard
AnomaliesMulti
Bernard-Thomas earnings drift 1989
Source: encyclopedia
Echo chamber social media
ConfirmationShort
Social media echo chambers
Source: encyclopedia
Endowment effect ownership
Prospect TheoryMulti
Endowment effect - value owned items more
Source: encyclopedia
Equity premium puzzle
AnomaliesLong
Equity premium puzzle - explained by myopic loss aversion
Source: Lup
FOMO fear of missing out
Herd BehaviorShort
FOMO drives buying at peaks
Source: encyclopedia
Galbraith bezzle theory
BubblesShort
Galbraith - the bezzle in booms
Source: encyclopedia
Get-evenitis breakeven
Mental AccountingShort
Get-evenitis - hold loser to breakeven
Source: encyclopedia
Greater fool theory
BubblesShort
Greater fool theory - sell to bigger fool
Source: encyclopedia
Herding amplifies bubbles
Herd BehaviorShort
Herding inflates asset bubbles
Source: Abacademies
Hindsight bias
OverconfidenceShort
Hindsight bias - "I knew it all along"
Source: Dunham
House money effect
Mental AccountingMulti
House money - take more risk after wins
Source: encyclopedia
IPO long-term underperformance
AnomaliesShort
IPO long-term underperformance
Source: encyclopedia
IPO underpricing puzzle
AnomaliesMulti
IPO underpricing first-day pop
Source: encyclopedia
Illusion of control
OverconfidenceShort
Illusion of control over random outcomes
Source: encyclopedia
Information avoidance
ConfirmationShort
Information avoidance - avoid bad news
Source: encyclopedia
Information cascades Bikhchandani
Herd BehaviorShort
Bikhchandani info-cascades 1992
Source: Abacademies
Insider buying ratio
SentimentMulti
Insider buy/sell ratio
Source: encyclopedia
Investigative herding
Herd BehaviorShort
Investigative herding - same data sources
Source: encyclopedia
Investment policy statement
StrategyMulti
IPS - reduces emotional decisions
Source: encyclopedia
Investor sentiment indicators
SentimentMulti
Investor sentiment surveys + indicators
Source: encyclopedia
Japan 1989 land+stocks
BubblesShort
Japan 1989 dual bubble
Source: encyclopedia
Kahneman + Tversky 1979 paper
FoundationsMulti
K-T 1979 prospect theory paper
Source: Wikipedia
Kahneman 2002 Nobel
FoundationsMulti
Kahneman won Nobel 2002
Source: SHP
Kindleberger Manias
BubblesMulti
Kindleberger Manias Panics + Crashes
Source: encyclopedia
Loss aversion 2x pain vs gain
Prospect TheoryShort
Losses ~2x as painful as equivalent gains
Source: SHP
Low-vol anomaly
AnomaliesLong
Low-volatility outperformance anomaly
Source: encyclopedia
Margin debt levels
SentimentMulti
Margin debt levels sentiment
Source: encyclopedia
Meme stocks 2021 GME
BubblesShort
Meme stocks 2021 - GME AMC etc
Source: encyclopedia
Mental accounting Thaler
Mental AccountingMulti
Thaler mental accounting
Source: encyclopedia
Minsky cycles instability
BubblesShort
Hyman Minsky financial instability
Source: encyclopedia
Mississippi Bubble 1720
BubblesShort
Mississippi Bubble 1720
Source: encyclopedia
Momentum anomaly
AnomaliesLong
Momentum 12-1 month anomaly
Source: encyclopedia
Mutual fund flows
SentimentMulti
Mutual fund flows sentiment
Source: encyclopedia
Myopic loss aversion Benartzi
Prospect TheoryShort
Myopic loss aversion equity premium puzzle
Source: Lup
NAAIM exposure
SentimentMulti
NAAIM exposure index
Source: encyclopedia
Nifty Fifty 1960s 70s
BubblesShort
Nifty Fifty US 1960s-70s
Source: encyclopedia
Overconfidence Barber Odean
OverconfidenceShort
Overconfident traders trade more earn less
Source: SHP
Overconfidence men > women
OverconfidenceMulti
Men trade more (overconfident) - underperform women
Source: encyclopedia
Post-earnings announcement drift
AnomaliesMulti
PEAD post-earnings drift
Source: encyclopedia
Pre-commitment devices
StrategyMulti
Pre-commitment - reduce future emotion
Source: encyclopedia
Pre-mortem premortem analysis
StrategyMulti
Premortem - imagine failure ex-ante
Source: encyclopedia
Probability weighting
Prospect TheoryMulti
Probability weighting - over-weight small probs
Source: encyclopedia
Prospect Theory paradigm shift
FoundationsMulti
Prospect theory paradigm shift in econ
Source: Wikipedia
Put/Call ratio sentiment
SentimentMulti
Put/Call ratio sentiment indicator
Source: encyclopedia
Pyramid of needs investment
Mental AccountingMulti
Behavioral portfolio theory - layered pyramid
Source: encyclopedia
Quality vs junk Asness
AnomaliesLong
QMJ Asness 2019 quality minus junk
Source: encyclopedia
Railway Mania UK 1840s
BubblesShort
UK Railway Mania 1840s
Source: encyclopedia
Recognition heuristic
HeuristicsMulti
Recognition heuristic - prefer familiar
Source: encyclopedia
Recognition validity
HeuristicsMulti
Recognition validity in stock picking
Source: encyclopedia
Reference dependence
Prospect TheoryMulti
Outcomes evaluated relative to reference
Source: SHP
Regret aversion
Mental AccountingShort
Regret aversion - avoid action that may cause regret
Source: encyclopedia
Reinhart-Rogoff This Time
BubblesMulti
Reinhart-Rogoff "This Time is Different"
Source: encyclopedia
Representativeness
HeuristicsMulti
Representativeness heuristic stereotyping
Source: encyclopedia
Reputational herding
Herd BehaviorShort
Reputational herding among managers
Source: encyclopedia
Reversal long-term anomaly
AnomaliesMulti
Long-term reversal (DeBondt-Thaler)
Source: encyclopedia
Roaring 20s leading to 1929
BubblesShort
Roaring 20s + 1929 crash
Source: encyclopedia
Self-attribution bias
OverconfidenceShort
Self-attribution - take credit for wins blame circumstances for losses
Source: encyclopedia
Shiller 2013 Nobel
FoundationsMulti
Shiller Nobel 2013
Source: encyclopedia
Shiller Irrational Exuberance
FoundationsMulti
Shiller Irrational Exuberance 2000
Source: encyclopedia
Size effect Banz
AnomaliesLong
Banz 1981 size effect anomaly
Source: encyclopedia
South Sea Bubble 1720
BubblesShort
South Sea Bubble 1720
Source: encyclopedia
Status quo bias
Prospect TheoryMulti
Status quo bias - prefer current state
Source: encyclopedia
Sunk cost fallacy
Mental AccountingShort
Sunk cost fallacy continue losing investments
Source: Dunham
Take-the-best
HeuristicsMulti
Take-the-best heuristic Gigerenzer
Source: encyclopedia
Thaler 2017 Nobel
FoundationsMulti
Thaler won Nobel 2017
Source: encyclopedia
Thaler nudge 2008
FoundationsMulti
Thaler & Sunstein - Nudge 2008
Source: encyclopedia
Thinking Fast and Slow Kahneman
FoundationsMulti
Kahneman 2011 popular book
Source: encyclopedia
Time of max pessimism
StrategyLong
Buy at point of max pessimism (Templeton)
Source: encyclopedia
Trading volume Barber-Odean
OverconfidenceShort
Barber-Odean - 2000 trading hurts wealth
Source: encyclopedia
Tulip Mania 1637
BubblesShort
Tulip Mania 1637 first asset bubble
Source: encyclopedia
US housing 2006-08
BubblesShort
US housing 2006 bubble peak
Source: encyclopedia
VIX fear gauge
SentimentMulti
VIX as fear gauge
Source: encyclopedia
Value premium Fama-French
AnomaliesMulti
Fama-French value premium
Source: encyclopedia
Volatility puzzle Shiller
AnomaliesMulti
Excess volatility puzzle (Shiller)
Source: encyclopedia
An encyclopedia of publicly documented strategies for education. YCAI does not recommend, endorse, or trade any of these. Not investment advice.