Emotions trump smarts
Making good financial decisions can be difficult, even for very smart people. One reason is that most people make decisions based in large part on their own biases and the emotions they are experiencing at the time rather than analyzing the facts. In other words, their choices are based more on what they are feeling rather than what they know. However most decisions, especially financial ones based on emotions, often turn out to be the wrong ones.
The difference between theory and practice
Conventional financial theory assumes that people make financial decisions based upon rational rather …Read More