The Psy-Fi Blog

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A Sideways Look at Psychology and Finance

Latest Blog Posts

  • Investors, You’ve Been Framed on Nov 23, 2009 in behavorial finance

    Lakoff's Political FramesSuddenly politicians are all excited about a psychological trick that’s been known about for years. This is in no small part due to George Lakoff who’s popularised the idea of ‘framing’ in political circles. In the...

  • Peak Oil, The Revenge Of Planet Earth? on Nov 19, 2009 in non-stock investments

    Depletion or Destruction?A recent report from the UK’s Energy Research Council, a body not known for sounding panicky alarms, suggests that under all reasonable scenarios the rate of global oil production will peak by 2030. By their worst case esti...

  • Intelligence Can Seriously Damage Your Wealth on Nov 16, 2009 in index trackers

    Cerebral InvestorsIn most walks of life intellectual superiority is generally viewed as something that gives the possessor an advantage over their fellow humans. Admittedly measuring intelligence is a pastime fraught with difficulty and hedged in con...

  • A Sideways Look At ... Economic Models on Nov 14, 2009 in sideways

  • Anchoring, The Mother of Behavioral Biases on Nov 12, 2009 in behavorial finance

    Behavioural Biases (5): AnchoringJust as an anchored ship rarely strays too far away from its tethering point a human being prefers to stick close to the references with which they feel most comfortable. Anchoring is an easy-to-demonstrate, hard-to-...

  • What's the Shape of Your Recession? on Nov 8, 2009 in investing trends

    Clueless CommentatorsOver the past few years we’ve had endless economic experts opining on the nature of the recession. From initial hopes of a bouncy V shaped recovery we moved onto a sluggish U and then a very droopy looking L before a dose of go...

  • Pricing Anomalies: Now You See Me, Now You Don’t on Nov 5, 2009 in value investing

    Imaginary BeastiesDown the years researchers have identified a whole host of pricing anomalies that offer strategies to outperform markets. Unfortunately as soon as anyone starts to exploit them these little beasts disappear like a bunny in a magici...