behavioral finance is the use of psychology-based theories to analyze stock market anomalies and investing decisions, offering rational explorations for seemingly inextricable consumer and investor behavior. for example, ? recently received his new credit card in the mail. even though he is unemployment and in debt, ? buys a new football table with his credit card. ? continues to use his credit card ? outside of his income range. a possible exploration for ?'s behavior is that he believes that at some point in the future he will be at better position to pay off his debt. unfortunately, ? is unable to make his credit card payments on time and his account is sent to a collection agency. another example of behavioral finance, this time in the markets is when investors has come to herd instinct. when the market is moving up or down, investors tend to develop a feel of missing important knowledge about a stock. these investors are ? to follow the herd and buy or sell certain stock when it is most popular to do so. one of the most infamous examples of hard instinct is the .com boom and burst of the early 2000s. while finance lends to opt to radical fact based decision making, many investors and consumers take a reactive position in financial ?, which can lead to irrational and often regrettable decisions.
- behavioral finance・・・行動ファイナンス