We’re excited to announce that Dr. Matt Davison, Principal Researcher at the Financial Wellness Lab, and Dr. John R.J. Thompson, Collaborating Researcher, have published a new journal article titled "Functional Mixed-type Clustering of Investors' Daily Returns During a Market Shock Change-point and Recovery."
In this study, Dr. Davison and Dr. Thompson analyze daily portfolio positions of numerous client accounts from July 17, 2019, to February 19, 2021—a period spanning significant market turbulence. Their findings reveal distinct behavioral patterns: high-risk clients often overextended their risk appetites, while low-risk clients were overly conservative. Importantly, they demonstrate that higher risk-taking during the market crash correlated with a stronger recovery, offering critical insights into investment behavior during volatile periods.
To access the article, follow this link: https://dl.acm.org/doi/10.1145/3677052.3698633
Stay tuned for more research updates from the Financial Wellness Lab!
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