According to statistical evidence presented in academic studies, patterns of investor behavior are often counterproductive. Drawing on a comprehensive review of academic journal articles, reporting research in the relatively new field of behavioral finance, this paper examines patterns of investor behavior, as well as reasons that individuals are reluctant to invest in the first place. The "Annotated Bibliography on the Behavioral Characteristics of U.S. Investors," also prepared by the Federal Research Division, summarizes the research cited in this paper.