Yahoo.com
by Marlowe Hood and Richard Ingham
Thu Sep 18, 9:57 PM ET
Many economists believe that investors make decisions rationally, weighing up corporate data and other pricing signals to evaluate gain or risk before buying or selling stocks.
But this keystone belief in how markets function is now under mounting attack after this month’s global stocks crash, the latest in a string of financial shocks over the past two decades.
Proponents of rival concepts say that primitive emotions, herd mentality and raging hormones are among the invisible motors that help inflate an asset bubble and then prick it…..
In this light, says Coates, fund managers would be advised to get an “endocrinal mix” on the trading floor.
Women and older men would add a calmer, longer perspective to the headstrong, testosterone-driven actions of young male colleagues.
“The ‘Master of the Universe’ really does believe in his own invincibility,” Tuckett said. “Even though many of the traders I interviewed told me ‘this boom can’t go on forever’, they kept on investing in it.”
Read More on raging male hormones…..
Yes – for older women and men on stock market floor – and in government!
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