Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Thursday, March 02, 2006
Neuro-Finance Tools of Deception or Windows unto our Soul?
Neuro-finance is gaining traction. Investors now accept that emotion and behaviour are integral components of stock market activity. This represents a radical departure from the efficient market school that claimed all market activity was based on rational pricing. Check out a blog at http://www.marketpsych.com/blog/blogger.html. Understanding this discipline will provide some additional caveat emptor tools for the investor. You can be assured that the financial con artist will not only be studying this field but will also be the star student voted most likely to succeed. The field is new and deserves our attention.