How well do financial experts perform? A review of empirical research on performance of analysts, day-traders, forecasters, fund managers, investors, and stockbrokers
AbstractIn this manuscript, empirical research on performance of various types of financial experts is reviewed. Financial experts are used as the umbrella term for financial analysts, stockbrokers, money managers, investors, and day-traders etc. The goal of the review is to find out about the abilities of financial experts to produce accurate forecasts, to issue profitable stock recommendations, as well as to make successful investments and trades. On the whole, the reviewed studies show discouraging tendencies of the alleged excellence of financial experts.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Business Administration with number 2004:9.
Length: 29 pages
Date of creation: 23 Aug 2004
Date of revision:
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, SE 113 83 Stockholm, Sweden
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Behavioral finance; Expert judgment; Financial psychology; Forecasting; Investment; Trading; Performance;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-09-05 (Accounting & Auditing)
- NEP-ALL-2004-09-05 (All new papers)
- NEP-BEC-2004-09-05 (Business Economics)
- NEP-CBE-2004-09-05 (Cognitive & Behavioural Economics)
- NEP-FIN-2004-09-05 (Finance)
- NEP-FMK-2004-09-05 (Financial Markets)
- NEP-RMG-2004-09-05 (Risk Management)
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