FYI Daily

Stockbroker Striking Out? Maybe It's SAD

Last updated: Oct 12, 2011

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Your emotional state might affect your financial risk tolerance, according to a new study.

Lisa Kramer and Mark Weber recruited faculty and staff from a large university, paid them for completing online surveys and behavioral assessments, and gave them the option of investing that money. They found that participants with seasonal depression invested more conservatively in the winter than other participants. In the summer, both groups showed similar risk tolerance.

Kramer told PsychCentral that, while we're used to thinking of economic decision-making as an objective process, their data shows otherwise.

Maybe the rational actor isn't so rational after all.