I gave this talk at the launch of Essentia Analytics, an innovative firm developing software to help fund managers track and improve their susceptibility to behavioural biases. Continue reading Emotions and the financial behaviour of professionals.
The video below is a presentation I made at the launch of the Open University Business School‘s Centre for the Public Understanding of Finance (PuFin). You can find a copy of the slides here. Martin Lewis also made a very … Continue reading The Emotional Business of Finance
Can understanding the psychology of investment behaviour help you outperform the market? Probably not, but it can certainly help reduce the probability that you will under-perform the market. This matters, because the majority of private investors under-perform. One compelling piece … Continue reading Investment, Emotions and the Temple at Delphi*
Humans have a great capacity for exercising control over their environment and for detecting patterns in the confusing mass of information they face. This capacity can also mislead; not least in financial markets. Have you ever looked at the clouds … Continue reading It’s clouds’ illusions I recall . . . trading and the illusion of control
Mark Fenton-O’Creevy and David Jones of IG Index discuss emotions and trading at the London Stock Exchange Continue reading Emotions and financial trading
And I am a weapon of massive consumption And it’s not my fault it’s how I’m programmed to function Lily Allen, The Fear, 2009 The financial crisis that hit us in 2008 has been analysed in great detail by economists and journalists. … Continue reading Shopping, impulsiveness and weapons of massive consumption
Money fractures marriages, drives wars, inspires art, motivates some people to great achievements, leads others to despair. Fear, desire, love, hate, jealousy, anger, anxiety, relief, shame and many more shades of emotion may attach to money in the course of … Continue reading Welcome to the emotional finance blog
A brief trawl of media comment on the banking industry over the last few years suggests that the industry is awash with criminals and fraudsters. The picture of traders, often presented in the press, is of amoral risk-takers with bosses … Continue reading LIBOR, rogue traders and the supply of motivated offenders