We propose to measure investor climate sentiment by performing analysis on StockTwits posts change and global warming. In financial markets, stocks of emission (carbon-intensive) firms underperform clean (low-emission) when is more positive. document investors overreaction risk reversal in longer horizons. Salient but uninformative events, such as the release a report abnormal weather facilitat...

While the vast majority of the literature reports momentum profitability to be overwhelming in the U.S. market and widespread in other countries, this paper finds that the pure momentum strategy in general does not yield excess profitability in the Chinese stock markets. We find instead strong mean reversion. A pure contrarian investment strategy produces positive excess returns and in general ...

6 are a key part of such assessments, but sometimes they can lead people astray, as 7 in motivated inference when people believe what fits with their desires. In contrast 8 to motivated inference, fear-driven inference generates beliefs that people do not 9 want to be true. Although paradoxical, this kind of inference is common in many 10 domains, including romantic relationships, health, paren...

An overview of the ongoing Currency Markets Modeling Project at New Mexico Institute of Mining and Technology (New Mexico Tech) is presented. The overall model is described, and this paper is an introduction to an ongoing interdisciplinary modeling and simulation effort at the Institute for Complex Additive Systems Analysis at New Mexico Institute of Mining and Technology (aka New Mexico Tech)....

A series of experiments suggest that, compared to the Bayesian benchmark, people may either underreact or overreact to new information. We consider a setting where agents repeatedly process new data. Our main result shows a basic distinction between the long-run beliefs of agents who underreact to information and agents who overreact to information. Like Bayesian learners, nonBayesian updaters ...

This paper develops a model of weight assignments using a pseudo-Bayesian approach that reflects investors’ behavioral biases. In this parsimonious model of investor sentiment, weights induced by investors’ conservative and representative heuristics are assigned to observations of the earning shocks of stock prices. Such weight assignments enable us to provide a quantitative link between some m...