We like to think of ourselves as clever, logical, rational investors. We like to think we're smart.
Unfortunately, as James Montier's recent book reminds us [1] , we are often driven by pride, fear, greed, shamed, or contrariness. Investors are no more rational than anyone else. In fact, our brains often work against us.
Behavioural economics looks at how people behave, and why - and shows that markets are driven by irrational impulses. We can be our own worst enemies.The good thing about this, of course, is that behavioural economics also allows us to see exactly what irrational impulses drive our investing - and once we're aware of them, we can avoid them.
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Keen student of all things financial - always looking for fresh ideas in the markets, whether it be new stocks or innovative instruments.
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