Richard L. Peterson is an American behavioral economist and

psychiatrist A psychiatrist is a physician who specializes in psychiatry. Psychiatrists are physicians who evaluate patients to determine whether their symptoms are the result of a physical illness, a combination of physical and mental ailments or strictly ...

. He has developed behavioral finance-based quantitative models, imaged the brains of subjects play-trading, and is a frequent writer about

social media Social media are interactive technologies that facilitate the Content creation, creation, information exchange, sharing and news aggregator, aggregation of Content (media), content (such as ideas, interests, and other forms of expression) amongs ...

sentiment. Peterson developed text mining software to identify and quantify economically predictive sentiments, and speaks widely in the areas of

behavioral finance Behavioral economics is the study of the psychological (e.g. cognitive, behavioral, affective, social) factors involved in the decisions of individuals or institutions, and how these decisions deviate from those implied by traditional economi ...

and social media analytics.

Life

Peterson graduated from the

University of Texas The University of Texas at Austin (UT Austin, UT, or Texas) is a public research university in Austin, Texas, United States. Founded in 1883, it is the flagship institution of the University of Texas System. With 53,082 students as of fall 2 ...

, with a BS ''cum laude'' in

Electrical Engineering Electrical engineering is an engineering discipline concerned with the study, design, and application of equipment, devices, and systems that use electricity, electronics, and electromagnetism. It emerged as an identifiable occupation in the l ...

, a BA, and Doctor of Medicine degrees (M.D.). He performed postdoctoral neuroeconomics research at

Stanford University Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...

, and is Board-certified in

Psychiatry Psychiatry is the medical specialty devoted to the diagnosis, treatment, and prevention of deleterious mental disorder, mental conditions. These include matters related to cognition, perceptions, Mood (psychology), mood, emotion, and behavior. ...

. He founded and runs the sentiment analysis firm MarketPsych Data and ran the psychology-based quantitative asset management firm MarketPsy Capital. In the educational field he developed financial personality tests, published in academic journals and textbooks, and is an associate editor of the

Journal of Behavioral Finance A journal, from the Old French ''journal'' (meaning "daily"), may refer to: *Bullet journal, a method of personal organization *Diary, a record of personal secretive thoughts and as open book to personal therapy or used to feel connected to onesel ...

. In 2007, Peterson wrote the book Inside the Investor's Brain (Wiley), which translated behavioral finance concepts from academia to a lay audience. The book aggregated and reviewed research indicating that innate neurological influences predictably bias individual investor behavior. In 2016 he published Trading on Sentiment (Wiley), which explained quantitative research on media themes and sentiments that appear to drive asset prices in predictable patterns. He lives in California with his family.

Media

Peterson has appeared in CBS Evening News,

CNBC CNBC is an American List of business news channels, business news channel owned by the NBCUniversal News Group, a unit of Comcast's NBCUniversal. The network broadcasts live business news and analysis programming during the morning, Day ...

NPR National Public Radio (NPR) is an American public broadcasting organization headquartered in Washington, D.C., with its NPR West headquarters in Culver City, California. It serves as a national Radio syndication, syndicator to a network of more ...

BBC The British Broadcasting Corporation (BBC) is a British public service broadcaster headquartered at Broadcasting House in London, England. Originally established in 1922 as the British Broadcasting Company, it evolved into its current sta ...

Wall Street Journal ''The Wall Street Journal'' (''WSJ''), also referred to simply as the ''Journal,'' is an American newspaper based in New York City. The newspaper provides extensive coverage of news, especially business and finance. It operates on a subscriptio ...

Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Jap ...

, and

Harvard Business Review ''Harvard Business Review'' (''HBR'') is a general management magazine published by Harvard Business Publishing, a not-for-profit, independent corporation that is an affiliate of Harvard Business School. ''HBR'' is published six times a year ...

, and he was called "Wall Street's Top Psychiatrist" by the

Associated Press The Associated Press (AP) is an American not-for-profit organization, not-for-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association, and produces news reports that are dist ...

Academic journal articles

* Peterson R. (2007). "Affect and Financial Decision Making: How neuroscience can inform market participants."

, v8, n2. * Peterson R. (2005). "Investing Lessons from Neuroscience: fMRI of the reward system."

Brain Research Bulletin ''Brain Research Bulletin'' is a peer-reviewed scientific journal covering neuroscience. It was established in 1976 with Matthew J. Wayner (then at Syracuse University) as founding editor in chief. Later it was edited by Stephen Dunnett (Cardiff ...

. v67, n5, 391-397. * Knutson B, Taylor J, Kaufman M, Peterson R, Glover G. (2005). "Distributed Neural Representation of Expected Value." Journal of Neuroscience, 25, 4806-4812. * Knutson B & Peterson, R. (2005). "Neurally reconstructing expected utility."

Games and Economic Behavior ''Games and Economic Behavior'' (''GEB'') is a journal of game theory published by Elsevier. Founded in 1989, the journal's stated objective is to communicate game-theoretic ideas across theory and applications. It is considered to be the leadi ...

. 52, 305-315. * Peterson, R. (2002). "'Buy on the Rumor:' Anticipatory affect and investor behavior." Journal of Psychology and Financial Markets, v3, n4.

Textbook chapters

* Teodoro, T. Q., Clark-Bell, J., & Peterson, R. L. (2023). "ESG Controversies and Stock Returns." In Handbook of Alternative Data in Finance, Volume I (pp. 350-366). Chapman and Hall/CRC. * Teodoro, T. Q., Clark-Bell, J., & Peterson, R. L. (2023). "Defining Market States with Media Sentiment." In Handbook of Alternative Data in Finance, Volume I (pp. 267-278). Chapman and Hall/CRC. * Luciani, A., Liu, C., & Peterson, R. (2022). Media Sentiment Momentum. In Handbook of Alternative Data in Finance, Volume I (pp. 247-266). Chapman and Hall/CRC. * Peterson, R. (2016). "The Psychology of Markets: Information processing and the impact on asset prices." Handbook of Sentiment Analysis in Finance. pp 263-285. Eds. Gautam Mitra and Xiang Yu. Albury Books. * Liu, C., & Peterson, R. (2016). "Currency Sentiment Analysis." Handbook of Sentiment Analysis in Finance. pp 422-431. Eds. Gautam Mitra and Xiang Yu. Albury Books. * Fafula, A., & Peterson, R. (2016). "Predicting Global Economic Activity with Media Analytics." Handbook of Sentiment Analysis in Finance. pp 366-381. Eds. Gautam Mitra and Xiang Yu. Albury Books. * Peterson R. (2014). "Neurofinance." Chapter 23 of Behavioral Finance. Eds. Baker and Ricciardi. John Wiley & Sons: New York. * Peterson R. (2010). "Neuroeconomics and Neurofinance." Chapter 5 of Behavioral Finance: Investors, Corporations, and Markets. Eds. Baker and Nofsinger. John Wiley & Sons: New York. * Peterson, R. (2006). "Buy on the Rumor" and "Sell on the news." In M. K. Ong (Ed.), Risk management (pp. 677-698). Academic Press.

Books

*''Trading on Sentiment: The Power of Minds over Markets.'' Wiley, John & Sons: New York, March 2016, *''MarketPsych: How to Manage Fear and Build Your Investor Identity'', Wiley, John & Sons, September 2010, *''Inside the Investor's Brain: The Power of Mind over Money'', Wiley, John & Sons, July 2007,

References

External links

"Richard L. Peterson: Psychology and finance all in one"
"Swissquote"
"MarketPsych Analytics from LSEG"
"London Stock Exchange Group"

"Los Angeles Times" {{DEFAULTSORT:Peterson, Richard L. 1972 births Living people Cockrell School of Engineering alumni Stanford University people American psychiatrists Behavioral finance American behavioral economists