Posts filed under “Psychology”

Empathy, Neurochemistry, and the Dramatic Arc

Narratives — specifically, the classic dramatic arc as outlined by German playwright Gustav Freytag — can evoke powerful responses, leading the brain to release the neurochemicals cortisol and oxytocin.

 

Paul Zak: Empathy, Neurochemistry, and the Dramatic Arc

 

Read More

Category: Psychology, Science, Video

Choice Words on Behavioral Finance and Dick Fuld

Barry Ritholtz’s Choice Words on Behavioral Finance and Dick Fuld
 

The Bloomberg View columnist and investment blogger talks behavioral biases to avoid and how Lehman Brothers committed suicide (LOL Is it me, or do I look weird?)
 

 

Category: Psychology, Video

The Amazing Disconnect Between Hedge Fund Performance & AUM

Earlier this week, Greg Zuckerman of the Wall Street Journal pointed out one of the great mysteries of today’s investment landscape: Despite underperforming by a substantial margin, hedge funds keep attracting more investors and assets under management. It is almost as if (to borrow the headline on Zuckerman’s article), “Hedge Funds Keep Winning Despite Losing.”…Read More

Category: Asset Allocation, Bad Math, Hedge Funds, Investing, Psychology

Uh-Oh: BusinessWeek Cover Story Nationalism

Now I am engaging in full on selective perception:     Source: BusinessWeek

Category: Contrary Indicators, Financial Press, Media, Psychology, War/Defense

Would you pay $100 million dollars for this Grilled Cheese Food Truck?

If you have been a regular reader of mine, you are probably familiar with several things about me: First, you know I have been a steadfast bull during the entire rise in the stock market. It isn’t that I am such a genius or especially lucky. I just would rather not guess when the bull…Read More

Category: Contrary Indicators, Psychology, Valuation

Both Sides of the Brain (Updated)

Source: Dr. C Daniels ~~~ UPDATE: 1/25/15 Here is the latest scientific thinking, countering the older “left right” analysis:

Category: Psychology, Science

The Where-To-Be-Born Index

Source: The Economist

Category: Data Analysis, Economy, Psychology, Taxes and Policy

Josh Brown: Investment Fads and Themes, 1996-2014

Another year in the books and I’ve updated my Investing Fads and Themes by Year guide accordingly. It begins with 1996 because that was my first summer working on The Street and my earliest exposure to the market. I do this every December because I agree with the eminent philosopher Bob Marley in that “If you know your history,…Read More

Category: Investing, Psychology, Really, really bad calls

Generational Divide

Source: WSJ

Category: Psychology

CUBA Herzfield Caribbean Basin

In the announcement of US potentially normalizing relations with Cuba, the $33 million dollar closed end fund “Herzfield Caribbean Basin” — stock symbol CUBA — popped 40%:   click for ginormous chart   Here are its main holdings:   So much for those theories that investors are rational and markets are efficient . . ….Read More

Category: Markets, Psychology, Really, really bad calls