behavioral finance

Neuroscience & The Risk Manager including White Paper The Art of Algorithmic War

Coates, Shull, other experts weigh in on risk professionals’ attention to their discipline

Thursday, May 02, 2013,
Risk Professional Magazine (published by the Global Association of Risk Professionals – GARP)
By Katherine Heires
Over the past 20 years, advances in brain imaging technology and other methods of analyzing neural activity have yielded important insights into […]

Jamie, Psych Risk Management & Living to Trade Another Day

This is a true story.

3 years ago today (I have this weird memory for dates), I spotted Jamie Dimon and Bill Daley sitting outside Gibsons in Chicago. I just happened to have come from a lunch with Patricia Crisafulli who had written the House of Dimon and I had her book with his picture on […]

Golf Proving our Eyesight depends on our Feelings

Lisa Feldman Barrett and her colleagues at The Affective Science Institute have been talking for a couple of years now about how even our eyesight needs emotion to actually work. She says that without emotional input we can see, but not identify, an object.

Now even more evidence of the validity of this idea comes from […]

By |March 8th, 2012|Perception, Psychology Today, ReThinking|1 Comment

Hurricane Earl – Even More Objective Probability than the Markets

A few moments ago, CNBC broadcast a weather report showing the best and worst case scenarios for the potential left and right track of Hurricane Earl. They projected it will “brush the East Coast on Thursday”. Weather channels, however, are saying “Friday” is the H-day. Who’s right?

There is literally no way to know – until […]

By |August 31st, 2010|Perception, Subjective Probabilities|0 Comments

Beyond Behavioral Finance to the Brains Making the Decisions

The market meltdowns of last few years spawned an interest in the research and theoretical field of Behavioral Finance that simply didn’t exist before. Books like THINK TWICE, Harnessing the Power of Counter-Intuition garner great attention and great crowds for Michael Mauboussin the author. Calls to our office for talks, interviews or articles on “Irrationality” […]

By |June 25th, 2010|Perception, ReThinking|1 Comment

My take on Behavioral Economics & Finance

It took a major meltdown to jar them from their biases but the intellectual powers that be, from the Hudson and Charles rivers to the shores of Lake Michigan, finally are giving serious credence to the reality that most people, even professionals, don’t and even can’t act rationally in the face of making risk decisions. […]

By |March 8th, 2010|Markets|0 Comments

Everyone is Talking about Behavioral Economics

No matter where I go, no matter who calls, no matter when I check twitter… there it is – “behavioral finance”. In an effort to understand the great financial crisis of 2008 everyone it seems has turned to what the academics call the “biases and heuristics lit”. I mean it seems so ubiquitous to me […]

By |January 23rd, 2010|ReThinking|0 Comments