We study investor happiness in a panel survey of brokerage clients at a UK bank. When investors anticipate future happiness, they set their aspirations according to personal portfolio risk, objectives, investment horizon, con dence, and other individual characteristics. They are accurate in...

Return-chasing investors almost exclusively consider top-performing funds for their investment decisions. When drawing conclusions about the managerial skill of these top performers, they tend to neglect fund volatility and the cross-sectional information contained in the number of funds and the...

The tendency of humans to shy away from using algorithms - even when algorithms observably outperform their human counterpart - has been referred to as algorithm aversion. We conduct an experiment to test for algorithm aversion in financial decision making. Participants acting as investors can...