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You’re Only Human: Here’s How It Hurts Your Portfolio
FYI: I recently had the privilege of sitting down for a chat [1] with Richard Thaler, professor of the Booth School of Business at the University of Chicago. Thaler is widely recognized as the father of behavioral economics. He is perennially on the short list for a Nobel Prize in economics.
His observations about how people behave in the real world are a welcome change from the basic assumptions of most economists. Thaler breaks down the world into two sorts of people: Econs, the artificial constructs of how people are supposed to behave. They are perfectly rational, have great self-control, calculate like machines and know exactly what is best for themselves Regards, Ted http://www.ritholtz.com/blog/2015/07/youre-only-human-heres-how-it-hurts-your-portfolio/print/
