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
Journal of Consumer Research · 2002 · Volume 29 · Issue 2
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 semistructured 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.
Keywords
Cognitive Processes, Judgment and Decision Making, Cluster Analysis/3-Way Scaling, Qualitative Dependent Variable Analysis, Simulation
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