Attention, Social Interaction, and Investor Attraction to Lottery Stocks

We test the hypothesis that retail investors’ attraction to lottery stocks induces overvaluation, and is amplified by high attention and social interactions. The lottery premium (negative abnormal returns) is stronger for high-retail-ownership stocks—especially those that also have high analyst coverage, high latest absolute earnings surprises, or extreme recent positive returns. The premium is also larger…

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Can We Rely on Our Intuition?

“I go with my gut feelings,” says investor Judith Williams. Sure, you might think, “so do I,”— if the choice is between chocolate and vanilla ice cream. But Williams is dealing with real money in the five and six figures. Williams is one of the lions on the program The Lions’ Den, a German television show akin…

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Neuroscience Says Your Body and Mind Get Stronger When You Focus on This 1 Thing

Most people realize that the mind and body are connected into a feedback loop. “A healthy mind in a healthy body” is why psychologists and physicians alike recommend sensible eating and regular exercise. Neuroscientists, however, recommend a different approach. Because they know that body-centric lifestyle changes (like diet and exercise) are difficult to maintain, they recommend starting…

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