Machine learning and artificial intelligence have seen a precipitous rise in popularity and noteworthiness over the past few decades, and with increasing vigor over the past few years. It seems like everyone and their dog is doing machine learning to solve some sort of problem. This herculean rise in popularity can be quantified by the…

Just over a year ago, we wrote about a behavioural bias called the “freak-out” effect where sharp market downturns cause investors to “panic sell.” The authors of the paper studying the freak-out effect found that of the investors who engaged in panic-selling behaviour, 30.9% of these investors never reinvested in risk assets (i.e., the stock…