In this detailed research report, economists Marco Cipriani, Roberta De Filippis, Antonio Guarino and Ryan Kendall assess the performance differences between professional and nonprofessional financial traders. In an expert-versus-novice contest, the authors find that intellectual capability has little to do with the two groups’ widely dissimilar results; rather, experience emerges as a critical differentiator in investment outcomes. Tyro investors as well as market pros will find useful – but perhaps unsurprising – insights in this rigorous analysis.
About the Authors
Marco Cipriani is an assistant vice president at the Federal Reserve Bank of New York. Roberta De Filippis is a junior policy analyst at the European Banking Authority. Antonio Guarino is an economics professor at University College London, where Ryan Kendall is a senior research fellow.