A new research showcase highlights the work of Dr Cameron Peng, of the LSE Department of Finance and Programme Director of Capital Markets in the Financial Markets Group. His research explores how investors’ memories of past experiences shape their expectations about the future and influence their financial decisions.
Drawing on survey responses from over 17,000 Chinese retail investors, the research examines how memories of past investment returns affect investors’ beliefs and trading behaviour. The study also has important implications for policymakers, as understanding how investors form their expectations can offer insights into market sentiment, financial risk perception, and the potential causes of market booms and crashes.
The research was conducted jointly with Zhengyang Jiang, Hongqi Liu and Hongjun Yan.
