What should investors make now of the mixed signals that question the strength of global equity markets? The copper price and implied market volatility strike a strong emotional chord with many investors. There is widespread faith in the power of these indicators to signal danger. How should investors set this emotion alongside the facts of […]
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Tag Archives: availability bias
New Review of practical Behavioral Economics by Cass Sunstein
February 22, 2013 
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New insights on behavioural economics by Cass Sunstein of Harvard Law School – the co-author (with Richard Thaler) of Nudge. Applying real-world behavioural economics, using choice architecture and default rules to beat biases In September 2010 David Cameron established a Behavioural Insights Team, nicknamed the “Nudge Unit” to see how to make practical use of […]
Continue readingAvailability bias in analysing Political Risk
March 7, 2012 0 Comments
Investors have just been reminded that there is still plenty of legal price-sensitive information around. The surprises are coming from politics. In theory, markets are meant to be efficient, and intelligently reflect all public information. The rapid arbitrage by the thousands of analysts and investors watching stocks should move prices quickly on news. Yet, behavioural […]
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Behavioural Edge 