« Not chippiness - contempt | Main | Tammy was right »

February 22, 2007

Comments

Matt Munro

In some circumstances a share price falling is a good thing - selling short, hedge funds etc.

william

V. quickly

- poor liquidity/inefficient markets will affect not only information flow, but set up an assymetry with insiders and outsiders

- serial correlation, i.e. not everyone has their own opinion, but uses the opinions of others (cf herds)

- errors do not cancel. most research into cognitive biases show that they are pervasive in the same direction.

- curse of knowledge: i.e. more knowledge is not always more helpful.

having said that I agree that in policy making, all these errors exist to a greater extent (greater reliance on experts to guide policy etc.)

jameshigham

...rational investors will eventually make more money than mugs...

Overall they will.

The comments to this entry are closed.

blogs I like

Why S&M?

Blog powered by Typepad