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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (53734)	11/2/2013 9:17:50 AM
From: ggersh	1 Recommendation Recommended By dvdw© Read Replies (1) \| Respond to of 71475

So within a compartment they feel as if they are totally correct, not knowing or realizing that outside their cozy compartment lies a totally different reality and that they are basically ignorant a$$holes......banksters and politicians that is ...-vbg-

To: dvdw© who wrote (53734)	11/2/2013 9:48:41 AM
From: marcher	1 Recommendation Recommended By ggersh Respond to of 71475

confidence is irrational... the noble response: “My questions about the stock market have hardened into a larger puzzle: a major industry appears to be built largely on an illusion of skill.” –Daniel Kahneman The judicial view of a “reasonable investor” plays an important role in federal securities regulation. Courts express great confidence in the reasonable investor’s cognitive abilities, a view not shared by behavioral economists. ...corporations and securities salesmen are not required to disclose information that should be obvious to reasonable investors. ...courts hold investors to a high standard of rationality that may not comport with observed reality. ...Behavioral economists, by contrast, do not observe real people investing in today’s markets behaving as the reasonable investors that federal securities law expects them to be...cognitive errors affect decisions made by both retail investors and financial practitioners and go beyond issues of financial literacy....there are observable biases resulting from departures from rational decision-making. Researchers have compiled an extensive catalogue of investors’ cognitive errors. These include: loss aversion (investors are reluctant to sell losing stocks even when advantageous for them to do so), overconfidence (investors, particularly male investors, are overconfident in their investment strategies), and representativeness heuristic (investors chase trends believing they have systematic causes). luc.edu --Overconfidence, an emotion common among investors, triggers a wide range of investment errors...an overconfident investor becomes a victim of some form of investment fraud, such as a Ponzi scheme...overconfidence as the primary psychological culprit responsible for the susceptibility of otherwise sophisticated investors to financial fraud. ...advocates providing the public with more information about the risks of scams, educating potential investors about the details of specific cases of fraud. He also recommends substantially increasing the penalties for such schemes, relative to rewards.-- sec.gov