Emotion Neuroscience and Investing By James Montier情感神经科学与投资.pdf

Emotion, Neuroscience and Investing - Investors as Dopamine Addicts By James Montier, Global Equity Strategy: January 20, 2005 Once again we look at one of our favourite analysts and behavioural finance thinker-James Montier of Dresdner Kleinwort Wasserstein in London. James wrote a top-book two years ago called Behavioural Finance: A User s Guide, and puts out ongoing research like the one we’ve got today. While the article is a little long, I think the insight you get will be able to help bring you to a new level of control over your investing and emotions (or at least your understanding). This report by James explores how the hard-wired brain affects investing. Emotional decision-making, dopamine, herding and self-control all play a part when our brains are try to make investment decisions, and James helps us to think a little more - outside the box. (Footnotes are at the end of the article.) What goes on inside our heads when we make decisions? Understanding how our brains work is vital to understanding the decisions we take. Neuroeconomics is a very new field that combines psychology, economics and neuroscience. That may sound like the unholy trinity as far as many readers are concerned, but the insights that this field is generating are powerful indeed. Before I head off into the realms of neuroscience I should recap some themes we have explored before, but that provide the backdrop for much of the discussion that follows. One of the most exciting developments in cognitive psychology over recent years has been the development of dual process theories of thought. Alright, stay with me now, I know that sounds dreadful, but it isnt. It is really a way of saying that we tend to have two different ways of thinking embedded in our minds. Spock or McCoy? For the T