Neuroeconomics has gained attention in recent years. While it’s not exactly news, research continues to lift the veil on the mental processes behind people’s choices. Why would anyone, particularly a savvy investor, continually try to defy biases rooted within our neurobiology?
It’s unlikely it is for human beings to escape the predispositions of our complex brains. Inclined to see patterns where none exist, it is normal to make causal inferences. But this kind of thinking leads to faulty conclusions and biased decision-making.