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De Bondt W F M and Thaller R 1985 Does the Stock Market Overact The Journal of Finance 20 793-805There are always some unexpected events occuring that can affect the stock market either in a positive way or a negative way Research in Experimental psychology finds that most people are likely to overreact to those dramatic news events The research based on the analysis of the CRSP The Center for Research in Security Prices monthly return rata shows that thirty-six months after the unexpected news the stocks affected by the bad news have earned about 25 more than the stocks affected by the good news This gives evidence that the market did overact on the news This research analyzed the data of the 70 stocks 35 affected by good news 35 affected by bad news which is a fair amount of stocks to show a phenomenon in the stock market By showing the difference of return between the winner and loser stocks after thirty-six month a long term in this case the researchers showed the real value of the stocks on both sides However I think the result could be more valuable for more investors if it can also shows the shorter term effect after the overreact Yermack D 2011 The Michelle Markup The First Ladys Impact on Stock Prices of Fashion Companies NYU Working Paper No 245129628This research analyzes the changes in apparel company stock prices right after Michelle Obama wearing the products of the company The result is surprising and found that within a week of the First Lady wearing a companys designer outfits at public events the price of that companys stock increased about 17 on average This may be because people are more likely to search the names of individual designer after the First lady wear their designs at major eventsThe researcher used the data of Michelles outfits for each event from the website wwwmrs-oorg and analyzed the effect of 124
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