Ethical blindness is one answer to the question "Why do good people do bad things?" Together, these two papers strongly reinforce the idea that ethical practice requires that we regularly hit the brakes and check our ethical blind spots.

The financial services industry has long embraced the potential of AI-based systems including robo-advice. These two papers review the psychological and relational dynamics that arise from "algorithm aversion".

The Big Five model of personality traits remains the dominant framework in personality research. Increasingly, it appears that aspects of investor sentiment and decision-making can also be explained by Big Five personality traits.

When evaluating investment performance, we generally acknowledge a fundamental distinction between skill and luck. This research paper looks at the concept of “moral luck” and finds that the outcome of an investment recommendation may shape others’ evaluations of both the skill and the morality of the investment adviser.

The idea that individuals are more sensitive to losses than to equivalent gains is critical in investment decision-making. Two recent papers highlight that loss aversion/tolerance is a more nuanced phenomenon than is commonly recognised.

The future state of the economy and markets depends, in part, on what people expect it will be. Understanding people's expectations, and how and why they form and revise them, has important implications for portfolio construction practice.

This paper provides a comprehensive review of the psychology of attention and its relationship to key economic concepts (utility, risk-taking, social preferences, and learning), and the emerging role of AI in the modern economy.

This paper provides a penetrating view into some of the motivational dynamics in play for individual investors who select sustainability-related investments, and implications for financial intermediaries who manufacture and sell such products.

The WallStreetBets phenomenon - and the sensational short squeeze of Gamestop in 2021 in particular - demonstrated the potentially dramatic influence of collective retail behaviour on financial markets.

The authors of this paper propose that it's not just confirmation bias, but the way it interacts with a specific set of fundamental beliefs that generates a surprisingly wide array of bias effects.

Despite widespread criticism of the efficient markets hypothesis, development of comparably broad alternatives has been lacking. One promising direction is the adaptive markets hypothesis which seeks apply the concepts and methods of ecology and evolutionary biology to financial market dynamics.

Hindsight can be a valuable source of learning. However, hindsight is undermined by a range of factors and hindsight bias clouds judgments in all areas of life - including investing.

Covid-19 is a situation in which an actual virus - as well as new narratives related to it and its associated consequences - began spreading at the same time, with major economic consequences.

Knowledge and proficiency in behavioural finance and investor psychology - finology - is developing ever better relationships with clients to help them achieve their goals. Benchmarking your current finology proficiency matters!

Self-awareness has been hailed as one of the most important meta-skills of the 21st century. In an investment advice context, both advisers and clients benefit from engaging in activities that promote its development.

Activist short sellers have received increasing attention - and notoriety - in recent years. This paper adopts the lens of narrative economics to reveal useful insights into the dynamics of activist short selling.

Emotions are an important influence on financial decision-making and investing. These three papers explore how emotional regulation strategies influence decision-making under risk and uncertainty, and the link to financial success.

Investors rely on both their competence and confidence to make investment decisions. The overconfidence effect is sometimes dubbed the "mother of all biases".

These two papers provide useful insights into how investors' attitudes and behaviours evolve over time, and how our beliefs are distorted if we experience positive or negative prior returns.

Even armed with objective probabilities to help decision-making, people often add their own subjective "weights". Two papers explain this "probability weighting" and how it affects investment decisions.