– Some of my friends are quick to pull out their phones over lunch to show me the recent quotes of their money making stocks. Their demeanor is in a good mood, happy, they carry themselves with a hint of self-importance. It’s these days that the market is generally up, most investors are making a bit…
The Trick to Making Better Forecasts
By Jason Zweig Sept. 25, 2015 10:53 p.m. ET 3 COMMENTS Can’t anybody here play this game? Three-quarters of all U.S. stock mutual funds have failed to beat the market over the past decade. Last year, 98% of economists expected interest rates to rise; they fell instead. Most energy analysts didn’t foresee oil’s collapse from…
Changes in Sense of Humor May Presage Dementia New research suggests that shifts in what a person finds funny can herald imminent changes in the brain—possibly presaging certain types of dementia
Nov. 18, 2015 11:48 a.m. ET 36 COMMENTS A close friend was an even-keeled, responsible man, endowed with a sunny outlook and a gentle, punny sense of humor. So when he started to make snide remarks at social gatherings several years ago, I secretly championed the delight he was taking in his newfound freedom from…
What makes us feel good about our work?
By Dan Areily, Economist What motivates us to work? Contrary to conventional wisdom, it isn’t just money. But it’s not exactly joy either. It seems that most of us thrive by making constant progress and feeling a sense of purpose. Behavioral economist Dan Ariely presents two eye-opening experiments that reveal our unexpected and nuanced attitudes…
Rep. Ackerman speaking on Madoff Fraud – SEC staff being berated – did they have some intuition failure to miss the obvious fraud?
The SEC staff were taken by Madoff and his charm and way to spin facts. The SEC staff may have used the process of “anchoring and adjustment” such that they may huge intuitive mistakes by assuming a investment manager with a strong investing track record must be fine. Therefore we do not need to analyze…
Are Psychopaths partially responsible for the 2008 Global Crisis – The Psychopath Next Door Doc Zone CBC with Dr Robert Hare
Book to read: Snakes in Suits by Paul Babiak, Phd & Robert Hare, Phd
Investopedia: Behavioral Finance is a relatively new field seeking to combine behavioral and cognitive psychological theory
According to conventional financial theory, the world and its participants are, for the most part, rational “wealth maximizers”. However, there are many instances where emotion and psychology influence our decisions, causing us to behave in unpredictable or irrational ways. Behavioral finance is a relatively new field that seeks to combine behavioral and cognitive psychological theory…
Open Yale Course – Econ 252 – Behavioral Finance and the Role of Psychology – Professor Shiller
http://oyc.yale.edu/economics/econ-252-11/lecture-11 Overview Deviating from an absolute belief in the principle of rationality, Professor Shiller elaborates on human failings and foibles. Acknowledging impulses to exploit these weaknesses, he emphasizes the role of factors that keep these impulses in check, specifically the desire for praise-worthiness from Adam Smith’s The Theory of Moral Sentiments. After a discourse on…
From VCC School of Instructor Education Site; “The Coddling of the American Mind”
http://www.theatlantic.com/magazine/archive/2015/09/the-coddling-of-the-american-mind/399356/ As published in the Atlantic Monthly magazine: Something strange is happening at America’s colleges and universities. A movement is arising, undirected and driven largely by students, to scrub campuses clean of words, ideas, and subjects that might cause discomfort or give offense. Last December, Jeannie Suk wrote in an online article for The New…
Why Beautiful People Get All the Stuff? by Dan Areily
People considered physically attractive enjoy many social and professional benefits others do not. But the reasons why are more complex than you might think. Behavioral economist and author Dan Ariely explains the psychological processes behind the “beautiful people” effect.
A simple trick will help you think more rationally. by Dan Ariely
Emotions can cloud our rational decision-making. By adopting the perspective of an outside advisor, Duke University psychologist Dan Ariely says we can inject some rationality into our cognitive processes. This isn’t merely an exercise in introspection; it’s an attempt to remove the limiting pangs of irrational thinking.
Jason Zweig on “Lucks” role in finance and investing
From Bloomberg By Barry Ritholtz – Sept 15, 2015 This week in our Masters in Business interview, we speak with Jason Zweig, the Wall Street Journal’s personal finance columnist, and author of “Your Money & Your Brain” and the forthcoming “The Devil’s Financial Dictionary.” During our conversation, Zweig discussed the role of luck in so…
mildlyirrational 