How to beat the dumbo in your head

The economics profession hardly has much to shout about these days. The financial crisis exposed its shortcomings and gave us cast-iron proof that human beings are bad at making economic predictions.

But one of the most useful things it has offered is rich material for the study of behavioural economics and finance – how human behaviour and emotions have a big impact on the financial world.

When it comes to investing, you need to be aware of what’s going on inside your head. If you are not, then you could end up with very disappointing returns on your money, says [...]

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