So, What Exactly Is Neuroeconomics and Why Should I Care?

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?