The National Bank of Denmark released Working Paper No. 217, which uses administrative data to show that investors’ forecast bias helps explain extrapolative buying of high-return stocks, differences in selling behaviour, and how past performance and capital gains translate into purchase, sale and flow decisions.
National Bank of Denmark 2026-01-20
National Bank of Denmark publishes working paper finding forecast bias shapes individual investor stock trading
The National Bank of Denmark's Working Paper No. 217 reveals that investors' forecast bias influences extrapolative buying of high-return stocks, selling behavior, and the impact of past performance and capital gains on investment decisions.