For those of you that followed with interest the publication of my series of A Theory of Behavioral Finance articles from November 2020 through December 2020, I have just assembled all of that material into a single downloadable whitepaper. This is not just a compilation of those articles because I have updated the articles with additional information, as well as clarified a points based on feedback I received. Download your free copy and if you like it, share A THEORY OF BEHAVIORAL FINANCE with your colleagues.

For those of you unfamiliar with the original articles, a little background…

A criticism of behavioral finance is that it lacks an overarching theory. Namely, that it is just a long list of quirks and oddities logged by scientists about human behavior, but without an explanation for why they exist, or what to do with the insights revealed through the many experiments done in service to behavioral finance. Furthermore, a lack of a theory limits behavioral finance from making specific predictions about future outcomes. In turn, this means that behavioral finance is just short of being a science.

This work seeks to rectify this situation, as well as to have behavioral finance replace the failed investment paradigm of Modern Portfolio Theory (MPT).