Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality

Mean Markets and Lizard Brains How to Profit from the New Science of Irrationality Everyone from journalists to market pros are turning to behavioral finance to explain analyze and predict market direction In contrast to old school assumptions of cool headed rationality the new b

  • Title: Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality
  • Author: Terry Burnham
  • ISBN: 9780471602453
  • Page: 298
  • Format: Hardcover
  • Everyone from journalists to market pros are turning to behavioral finance to explain, analyze, and predict market direction In contrast to old school assumptions of cool headed rationality, the new behavioral school embraces hot blooded human irrationality as a core feature of both individuals and financial markets The 2002 Nobel Prize in Economics was awarded to scholaEveryone from journalists to market pros are turning to behavioral finance to explain, analyze, and predict market direction In contrast to old school assumptions of cool headed rationality, the new behavioral school embraces hot blooded human irrationality as a core feature of both individuals and financial markets The 2002 Nobel Prize in Economics was awarded to scholars of this new scientific approach to irrationality In Mean Markets and Lizard Brains, Terry Burnham, an economist who has a proven ability to translate complex topics into everyday language, reveals the biological causes of irrationality The human brain contains ancient structures that exert powerful and often unconscious influences on behavior This lizard brain may have helped our ancestors eat and reproduce, but it wreaks havoc with our finances Going far beyond cataloguing our financial foibles, Dr Burnham applies this novel approach to all of today s most important financial topics the stock market, the economy, real estate, bonds, mortgages, inflation, and savings This broad and scholarly investigation provides an in depth look at why manias, panics, and crashes happen, and why people are built to want to buy at irrationally high prices and sell at irrationally low prices Most importantly, by incorporating the new science of irrationality, readers can position themselves to profit from financial markets that often seem downright mean Mean Markets and Lizard Brains skillfully identifies the craziness that is part of human nature, helps us see it in ourselves, and then shows us how to profit from a world that doesn t always make sense.

    One thought on “Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality”

    1. Конфликт между нашими эмоциями и целями выступает главной особенностью существования в индустриальную эпоху. В книге 4 части:Наука иррациональностиМакроэкономика СШАКак применить понимание иррациональности и макроэкономики к акциям, облигацим и недвжимостиКак зарабо [...]

    2. This is second book I've read by this author. The first, Mean Genes, dealt with evolutionary psychology. In this book, he takes much of that same perspective and turns it to financial behavior. The message of this book is simple: our emotions are not our friend when it comes to investing. The emotions – that is, the "lizard" part of the brain – drive us to do precisely the wrong thing. Because we predict the future based on what’s happened in the recent past and easily give way to fear and [...]

    3. Perhaps I am biased because the author was my investments professor, and I could hear him when reading it. However, as someone who almost never strays from fiction, I did enjoy and appreciate the read.

    4. Hindsight is 20/20, but the book (written in 2005, updated in 2007, published in 2008) said the housing market wasn't a bubble :(

    Leave a Reply

    Your email address will not be published. Required fields are marked *