This video (start around the 3:00 mark) about the burgeoning field of neuroeconomics has implications for how we should think about investing. This video will help answer such questions as:
- Why do our brains often find patterns that don’t exist and how can that impact our investment decisions? Provides good example of the frequency with which we check our stocks/investments impacts our decision-making.
- How can we overcome our brains which encode information in terms of reference points, which may be suboptimal when it comes to investment portfolios?
- When can emotions be useful in decision-making?
- How can we use visualization to slow our decision-making process?