Empirical research documents that temporary trends in stock pricemovements exist. Moreover, riding a trend can be a profitable investment strategy. (...)

Behavoiral finance as a subdiscipline of behavorial economics is finance incorporating findings from psychology and sociology into its theories.

This study offers the unique opportunity to analyze how an unprecedented crisis such as the September 11 tragedy in uences expected returns and volatility forecasts of individual investors. Via e-mail, we asked a randomly selected group of individual investors with accounts at a German online...