The Sentimental Markets Hypothesis: Temperamental Traders, Information Impact, and Patterns in Prices

MAR
16
Wednesday, 11:30 am - 1:30 pm
 
Location: Biltmore Court
CFALA Member Center
520 S Grand Ave. Suite 655 
Los Angeles, CA 90071
 
Speaker: Dr. Richard L. Peterson
 
Time: 11:30 am - 12:00 pm: Networking 
12:00 pm - 12:30 pm: Lunch
12:30 pm - 1:30 pm: Presentation
 
Dress: Business Casual
   
 
Add to Calendar 03/16/2016 11:30 AM 03/16/2016 1:30 pM America/Los_Angeles The Sentimental Markets Hypothesis: Temperamental Traders, Information Impact, and Patterns in Prices Most investors suspect that market psychology - such as cycles, greed and fear - influences asset prices, but there is little systematic research into why this occurs and how traders can take advantage of it. Evidence from the emerging field of sentiment analysis demonstrates the importance of media and information flow in fueling price patterns such as overreaction and underreaction. Biltmore Court CFALA Member Center 520 S Grand Ave. Suite 655 Los Angeles, CA 90071 CFALA info@cfala.org false MM/DD/YYYY
Recording (Members-Only)

An Applied Behavioral Finance Group Sponsored Event

Lunch, salad, and dessert will be catered by Mendocino Farms

Most investors suspect that market psychology - such as cycles, greed and fear - influences asset prices, but there is little systematic research into why this occurs and how traders can take advantage of it. Evidence from the emerging field of sentiment analysis demonstrates the importance of media and information flow in fueling price patterns such as overreaction and underreaction. Sentiment refers to the feelings, attitudes, and beliefs of investors, and in this talk we demonstrate evidence that the sentiments evident in news and social media, and extracted through text analytics, can significantly lead price action.

This talk will help attendees:
  • See how universal human neurocircuitry predisposes investors to collective risk-related behavioral patterns.
  • Identify the information characteristics that trigger crowds to overreact or underreact to news.
  • Learn how professionals are taking advantage of media sentiment across asset classes in strategies based on news momentum, trend-following, value investing, and bubble-timing.
  • Understand when you should invest along with the herd, anticipate a turning point, and when it is best to take a contrarian approach.
  • Use tools based on sentiment research to improve investment decision making.
Dr. Richard L. Peterson  | Richard Peterson has been called "Wall Street's Top Psychiatrist" by the Associated Press. Dr. Richard L. Peterson's firm MarketPsych (www.marketpsych.com) produces sentiment and macroeconomic indices derived from language analysis of global news and social media in partnership with Thomson Reuters. As portfolio manager for the outperforming MarketPsy Long-Short Fund LP from 2008-2010, he developed and traded on outperforming psychology-based quantitative models. In the educational field he developed popular financial personality tests, published widely in academic textbooks and journals including Games and Economic Behavior and Journal of Neuroscience, and is an associate editor of the Journal of Behavioral Finance. His latest book "Trading on Sentiment" (Wiley) is out March 2016. His prior books, "Inside the Investor's Brain" (Wiley, 2007) and "MarketPsych" (Wiley, 2010) were both named top financial books of the year by Kiplinger. Dr. Peterson received cum laude Electrical Engineering (B.S.), Arts (B.A.), and Doctor of Medicine degrees (M.D.) from the University of Texas. He performed postdoctoral neuroeconomics research at Stanford University and is Board-certified in Psychiatry. Dr. Peterson lives in California with his family.
 
Registration Fees
$10 (Members) | $15 (Non-Member)
Parking Information
Click links for address and rates

Pershing Square Garage: Rates vary

Central Library Parking: Rates vary

Joe's Auto Parks: $12 

Pacific Center Parking: $15


More Parking Options (Click link)

WARNING: Parking at Millennium Biltmore - $45 Daily Max; $4.50 each 15 minutes

 
Payment Information
We accept the following:

If you prefer to pay by check please register online and select "purchase order" as your payment option and enter your last name as the purchase order number.

 

Mail check to: 
CFA Society of Los Angeles, 520 S. Grand Ave, Suite 655, Los Angeles CA 90071.

*Credit card payments will only be accepted through the secure online registration, and not by phone or email.

Cancellations
Cancellations must be received in writing by 9:00 am the day prior to the event. No phone cancellations are accepted. Please fax to the CFALA office at (213) 613-1233 or e-mail info@cfala.org. Member “no-shows” will be billed the non-member fee ($15) for the event which is posted on the CFALA website.
Chair: 
Stan Yang, CFA
As a participant in the CFA Institute Approved-Provider Program, the CFA Society of Los Angeles has determined that this program qualifies for 1 credit hour. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary.
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