In Mean Markets and Lizard Brains, Terry Burnhaman economist who has a proven ability to translate complex topics into everyday languagereveals the biological causes of irrationality and its connection to the way we invest. The human brain contains ancient structures that exert powerful and often unconscious influences on behavior. This "lizard brain" may have helped our ancestors eat and reproduce, but it wreaks havoc on our finances. Going far beyond cataloguing our financial foibles, Dr. Burnham applies this novel approach to all of today's most important financial topicsthe stock market, the economy, real estate, bonds, mortgages, inflation, and savings. This broad and scholarly investigation provides an in-depth look at why manias, panics, and crashes occur and how you can profit from this knowledge.
The investigation into the economic implications of the lizard brain began in the late 1970sand led to a 2002 Nobel Prize in Economics being awarded to the scholars of this new approachbut only recently have individual investors and market professionals begun to exploit these findings to explain, analyze, and predict market direction. In contrast to old-school assumptions of cool-headed rationality, the new school embraces hot-blooded human irrationality as a core feature of both individuals and financial markets.
Mean Markets and Lizard Brains converts cutting-edge intellectual developments into practical investment steps. Filled with in-depth insights and real-world advice, this guide:
- Provides a timeless blueprint for effective and low-stress investing through a thorough examination and explanation of the lizard brain.
- Summarizes the key findings of the science of irrationality and reveals the biological forces that cause even the smartest of people to make systematic mistakes.
- Sets the macroeconomic stage for choosing investments, with discussions of the economy, inflation, and the value of the U.S. dollar.
- Evaluates investments based on understanding how the lizard brain operates in today's global macroeconomic landscape.
By understanding and taming the lizard brain, you can position yourself to prosper in financial markets that often seem downright mean. Mean Markets and Lizard Brains skillfully identifies the craziness that is part of human nature, helps us see it in ourselves, and then shows us how to profit from a world that doesn't always make sense.
|Product dimensions:||6.28(w) x 9.10(h) x 0.93(d)|
About the Author
Terry Burnham is a leader in the application of biology to economics and finance. He is the Director of Economics at Acadian Asset Management LLC, and a research scientist at Harvard University. He was an economics professor at Harvard for many years, and has been an active and extremely successful participant in the financial markets for over twenty years. Dr. Burnham has a PhD in business economics from Harvard University, a master's in finance from MIT, an MS in computer science from San Diego State University, and a BS in biophysics from the University of Michigan. He is also a coauthor of the international bestseller Mean Genes: From Sex to Money to Food, Taming Our Primal Instincts.
Table of Contents
|Chapter 1||Introduction: Mean Markets and Lizard Brains||1|
|Part 1||The New Science of Irrationality||9|
|Chapter 2||Crazy People: Lizard Brains and the New Science of Irrationality||11|
|Chapter 3||Crazy World: Mean Markets and the New Science of Irrationality||35|
|Financial blind spots|
|Part 2||The Old Art of Macroeconomics||63|
|Chapter 4||U.S. Economic Snapshot: America the Talented Debtor||65|
|Profligacy & productivity|
|Chapter 5||Inflation: Rising Prices and Shrinking Dollars||85|
|Yogi Berra's diet|
|Chapter 6||Deficits and Dollars: Uncle Sam the International Beggar||115|
|A golden brain squandered|
|Limp loonies and plummeting pesos|
|Part 3||Applying Science and Art to Bonds, Stocks, and Real Estate||137|
|Chapter 7||Bonds: Are They Only for Wimps?||139|
|The mother of all deficits|
|Social security lockbox|
|Chapter 8||Stocks: For the Long Run or for Losers?||159|
|Stock speed limits|
|Tears and a journey|
|Chapter 9||Real Estate: Live in Your Home; Make Your Money at Work||193|
|Part 4||Profiting from the New Science of Irrationality||227|
|Chapter 10||Timeless Advice: How to Shackle the Lizard Brain||229|
|Humans in zoos|
|Beware the red zone|
|8 timeless tips|
|Chapter 11||Timely Advice: Investing in the Meanest of Markets||265|
|A golden generation|
|Lizard brain kryptonite|
|Returns without risk|