Feb 2017 – Determining market direction related to average returns
Bestselling author Michael Lewis has another hit on the shelves, “The Undoing Project” in which he profiles the fascinating collaboration of two Israeli born psychologists Daniel Kahneman and Amos Tversky whose research, writing and teaching challenges the way we think. It points out the flaws of our mental wiring that were largely soldered into place thousands of years ago and haven’t caught up with modern realities.
Mr. Lewis’s compelling read had us going back to one of our favorites, Daniel Kahneman’s 2011 book, “Thinking, Fast and Slow”. Dr. Kahneman, a psychologist, was awarded a Nobel Prize in Economics in 2002 for the work he did in the field now widely known as Behavioral Economics. We used his thinking to take a look at the surprising gains of the stock market since the recent election.
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