Brain activity of professional investors signals future stock performance.

ABSTRACT: A major aspiration of investors is to better forecast stock performance. Interestingly, emerging "neuroforecasting" research suggests that brain activity associated with anticipatory reward relates to market behavior and population-wide preferences, including stock price dynamics. In this study, we extend these findings to professional investors processing comprehensive real-world information on stock investment options while making predictions of long-term stock performance. Using functional MRI, we sampled investors' neural responses to investment cases and assessed whether these responses relate to future performance on the stock market. We found that our sample of investors could not successfully predict future market performance of the investment cases, confirming that stated preferen

SUBMITTER: van Brussel LD 

PROVIDER: S-EPMC11032448 | biostudies-literature | 2024 Apr

REPOSITORIES: biostudies-literature