Brain Activity Foreshadows Stock Price Dynamics

• Published in: The Journal of neuroscience Vol. 41; no. 14; pp. 3266 - 3274
• Main Authors: Stallen, Mirre, Borg, Nicholas, Knutson, Brian
• Format: Journal Article
• Language: English
• Published: United States Society for Neuroscience 07.04.2021
• Subjects: Aggregation behavior; Brain; Brain mapping; Economic forecasting; Females; Functional magnetic resonance imaging; Magnetic resonance imaging; Medical imaging; Neuroimaging; Nucleus accumbens; Pricing; accumbens; forecast; decision; choice; insula; financial

Successful investing is challenging since stock prices are difficult to consistently forecast. Recent neuroimaging evidence suggests, however, that activity in brain regions associated with anticipatory affect may not only predict individual choice, but also forecast aggregate behavior out-of-sample...