Blame the technology bubble on youth?

BVWireIssue #53-3
February 28, 2007

New research from the Harvard Business School suggests that youthful investors—as well as more youthful fund managers—may have contributed to the burst of tech stock bubble, from which many economic sectors still haven’t recovered. Comparing the returns of mutual fund managers both before and after the technology stock bubble (1998-2000), the HBS researchers show that fund managers under the age of 35 “exhibited trend-chasing behavior that produced over-investment in tech stocks,” while more mature managers may have heeded the lessons of prior experience, that “past returns do not imply future performance.” For a copy of the article, click here.

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