Since the work by Stigler on the economics of information in the early 1960s, economists have paid closer attention to the role of search for information. However, search methods are not considered in the theory of portfolio choice. We present a model of investor search behavior in order to...

Latest SCF 2016 wave shows that 57% of US households exhibit signs of financial illiteracy, a phenomenon even among college degree holders. Despite the previous findings about mistakes associated by financial illiterates, our findings portrays a picture in which financial illiterates households...

This paper addresses two puzzles about voter turnout. The first is that high income families are more likely to vote, even after controlling for age and education. The second is the large number of registered voters that do not vote (again, a more pronounced phenomenon among low income...

We use the VIX and basic trading behavior to time entry and exit from the market. Our strategy captures 89% of the bottom and 91% from the top (you miss only 11% and 9% from the peak point, respectively). We lay our strategy down in six acts. Act I: the daily average return in the stock market...

We perform 360 review on the state of Colorado to analyze the strengths and weaknesses, and provides recommendations to aid policy makers to enhance the economic growth and development. Across all U.S. states, the overall ranking of Colorado is top 10 and in the economy matrix is top one. Yet,...

Since Markowitz (1959), we deal with the uncomfortable stylized fact called the diversification puzzle- most investors hold only few individual stocks in their portfolios, though the mean-variance portfolio selection model requires many stocks. This paper demonstrates that the ex post...

This paper presents a Fear of Missing Out (FOMO) index. The index is constructed via three equally weighted FOMO components: (1) FOMO momentum: short-long moving average; (2) FOMO news sentiment: Google search trend; and (3) FOMO risk: investor margin account usage. Applying the FOMO monthly index...

Barber and Odean study the relationship between trading activity and returns. They find that households who trade more have a lower net return than other households. They argue that these results cannot emerge from a model with rational traders and instead attribute these findings to...