Behavioral Finance

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Behavioral finance is the study of how psychology affects investor behavior and financial markets.

The study of behavioral finance relies on the assumption that investors and other financial decision-makers do not always behave rationally and instead often make choices based on cognitive biases or emotional responses; in turn, researchers in the field study how psychological and emotional forces can shape financial markets at scale.through a market-based lens, some of its lessons can apply to individuals trying to make sense of their own financial decision-making.

Debt is incredibly common, yet we often do not discuss its impact. Moralizing debt can create isolation and shameful feelings.Why fear, greed, and anxiety can sway your financial decisions—and how to use that knowledge to make smarter choices. Emotions and celebrities took the center field at Super Bowl LVIII, but psychology shows where brands connect or fumble: CeraVe got it right, and Dove may have missed the mark.Does having more money mean more happiness? Research shows that societies with increasing inequalities create conditions that worsen our mental health on both ends of the income spectrum.

Tipping has become a psychological game in which someone hands you a device with fixed tipping options, coercing you to tap “25%.” Don't let guilt guide you.A survey finds that 96% of Americans are concerned about the current state of the economy. So what are many doing to cope with this stress?

 

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