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And as an addendum, I highly recommend "Thinking, Fast and Slow" by Daniel Kahneman. A huge take away for me from that book was that humans are very bad at pred
by vishnugupta 12y ago
And as an addendum, I highly recommend "Thinking, Fast and Slow" by Daniel Kahneman. A huge take away for me from that book was that humans are very bad at predicting far into the future, especially when it comes to phenomenon that involve multiple feedback loops.
Finance is a prime example of such a phenomenon where changes in policy, regulation, productivity and a host of other factors that influence financial markets, have their impact only several years down the road. Human mind is such that it impulsively reacts only to recent memory and uses it to extrapolate it to future.
It is a fascinating read, one that got me hooked into the subject matter of human psychology and behavioral economics.