Behavior Of Investment Strategy Research

With the normativeness and perfection of Chinese stock market, the investment ideas have been being in the transition period from value-created mode to value-discovery mode. The investment strategies which come from Standard Finance which preconditions are rational investor hypothesis and efficient market hypothesis are being questioned. Meanwhile ,other strategies originated by Behavior Finance and called behavior investment strategies, are gradually paid attention to by people. The foundation of this paper consists of investors' cognitive biases and behavioral biases and mind theories which are relative with investors' investment decision-making .Firstly ,this paper explains the formation mechanism of behavior investment strategies which be classified into three strategy such as focus investment strategies,contrarian investment strategy and small cap value strategy; Secondly it describes behavior investment process management , at the same time displays the keys of behavior investment process management about several typical behavioral investment strategies ;fmally ,the feasibility of contrarian investment strategy on Chinese Security Market have been empirical studied. Through the empirical analysis ,on one hand ,we find there is no regression relation between P/E (market price to earnings ratio)and market return ratio, so the lower P/E cannot guide investors, on the other hand ,we find there is negative regression relation between P/BV(market price to book value ratio) and market return ratio, so we conclude that the lower P/BV is significant for investors.