Trade with Behavioural Finance Rules: Taking Benefit of The Representative Bias in Housing Sector

Trade with Behavioural Finance Rules: The Representative Bias in Housing Sector LIC Housing Finance is on a roll and making new highs. While I am writing this it is close to crossing 1000 price level mark. Now According to Cognitive Biases/Behavioural anomalies/pscycological anomalies/irrational behavoiurs; investors tend to take one or some stocks to be representative of the whole sector and think the laggards or smaller companies’ stocks will follow the leader. LIC housing is the Leader in housing finance pack. It has already witnessed a huge...