Taking stock of stockbrokers: Exploring momentum versus contrarian investor strategies and profiles

Maureen Morrin*, Jacob Jacoby, Gita Venkataramani Johar, Xin He, Alfred Kuss, David Mazursky

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

28 Scopus citations

Abstract

Two studies were conducted among professional security analysts to explore their patterns of decision making while managing investment portfolios. In study 1, a computer-based simulation, the analysts' styles differed markedly, with most exhibiting either a momentum or contrarian approach, as indicated by responses to portfolio stock price changes. Study 2 used a verbal protocol procedure and semi-structured depth interviews to probe the analysts' thought processes. Momentum and contrarian investors were found to differ on a number of dimensions including price expectations, age, experience, raw performance, risk propensity, cognitive style, knowledge calibration, and strategy adaptivity. Implications and limitations are discussed.

Original languageEnglish
Pages (from-to)188-198
Number of pages11
JournalJournal of Consumer Research
Volume29
Issue number2
DOIs
StatePublished - Sep 2002

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