How Media Narratives and Individual Investors Drive Markets

Ronnie Sadka, Boston College Carroll School of Management (bio)  |  READ NOTES

The equity market’s historic rebound following the Covid-19 downturn of 2020 was driven in part by the collective actions of millions of individual investors, many buying stocks for the first time. This expanded group of actors, who increasingly interact on social media to develop and spread trade ideas, has the potential to change market dynamics, introducing new risks and opportunities. In this session, Ronnie Sadka-the senior associate dean for faculty, chairperson and professor of Finance, and the Haub Family Professor at the Carroll School of Management, Boston College - will review the basics of behavioral finance and explain how investors should think about these principles in the modern era with a focus on the link between viral narratives and retail trading. 

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