Stock Price Expectations and Stock Trading

@article{Hurd2012StockPE,
  title={Stock Price Expectations and Stock Trading},
  author={Michael Dale Hurd and Susann Rohwedder},
  journal={Behavioral \& Experimental Finance eJournal},
  year={2012}
}
Background: The fact that many individuals inexplicably fail to buy stocks, despite the historical evidence for a good return on investment has been referred to as the stock market puzzle. However, measurements of the subjective probability of a gain show that people are more pessimistic than historical outcomes would suggest. Further, expectations of future stock price increases apparently depend on old information, which would seem to be at odds with rational expectations in the context of… Expand
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