Advanced Behavioral Finance: Asset Bubble and Investment Strategy

As long as there have been financial markets, there have been asset bubbles, where prices deviate substantially from fundamentals. In this session, after a brief overview of historical bubbles, we will review the state of the relevant research: empirical, theoretical, and experimental. The focus will be on the behavior that underlies different investment strategies that interact in the asset market ecosystem and how investors can design financial strategies to protect themselves and potentially profit from the existence of bubbles.