Panic Sellers

"When Do Investors Freak Out?" (Via Tyler Cowen.)

We show that panic selling and freakouts are predictable and fundamentally different from other well-known behavioral patterns such as overtradingor the disposition effect. Investors who are male, or above the age of 45, or married, orhave more dependents, or who self-identify as having excellent investment experience orknowledge tend to freak out with greater frequency.