Psychology

We know from the availability heuristic that people overestimate the likelihood of an event based on their ability to envision it—the risk of plane crash versus car crash is the best example of this. Holding that big check is easy to conjure up, but rare, deep stock market corrections not so much most of the time.

Hedge Fund Manager & Author of "The Black Swan" Risk Management

If you see less poor people in the streets, and abandoned children, it makes you feel better- and that helps us to build a more independent attitude in foreign policy. That, again, has feedback in Brazil- making people more confident feeling that we don't always have to say yes to whatever is presented.

Brazilian Diplomat & Foreign Minister under Lula's Presidency

It is this sense of democracy which empowers us, the people of Brazil, to elect someone like Lula who- in turn- uses that same democratic power to pursue policies to successfully combat inequality. This then reflects on the psychology of the people of our nation.

Brazilian Diplomat & Foreign Minister under Lula's Presidency

In the case of Brazil, one of the most important things is the huge ethnic and cultural mixture which makes us a country with dynamism, vibrancy, and the ability to understand the psychology of other nations. We have problems, of course, but this is one of our huge strengths, and a huge foreign policy asset.

Brazilian Diplomat & Foreign Minister under Lula's Presidency

The measurement that we have is not derived from market or economic data. It is derived from the twitterverse- from all these individual users acting as social sensors. When I have a bad day, that has nothing to do with the market! But how I respond to that bad day may be a reflection of a general level of discomfort about how the economy is doing and so forth.

Unknown.

I think behavioural economics has now become an accepted part of the thinking on markets- it's generally accepted that people's decision making is heavily influenced by emotional state and various other behavioural biases in comparison to previous models that assumed rational decision making in the markets. The markets and individual investors are driven by what you could call 'irrational considerations' and emotions play an important role in that.

Unknown.

A brand is really an emotional connection you have with a product or service. It's so emotional in fact that you become fairly irrational in the way you try to justify why you're using it. If you split our brain into a rational and irrational side…. a brand is what is operating at the irrational side.

Leading Brand Expert, Author & Neuromarketing Researcher

we make ourselves miserable, or we make ourselves happy. The amount of work is the same…

Author of "The Teachings of Don Juan" & Controversial Anthropologist

People underestimate their personal probability of encountering negative …it is not so much that individuals believe that negative events will not happen, but rather that these events are relatively unlikely to happen to them.

Former Premier of New Brunswick & Canadian diplomat and businessman

He told me that his returns got so much better in the Bahamas, why? Because he got the Wall Street Journal a few days late! It's so difficult to mentally distance yourself from the herd and so perhaps physically distancing yourself from the herd is a good idea.

Value investor and niece of legendary investor John Templeton

I genuinely believe that you can train yourself to see trouble as opportunity and realise that the best time to make money is when other people are most fearful.

Value investor and niece of legendary investor John Templeton

The point of maximum pessimism is the ultimate time to buy a stock because at this point, all the sellers are gone… and only buyers remain. How do you determine this point? Even Uncle John said it's impossible…. You never know until it has passed!

Value investor and niece of legendary investor John Templeton

Human beings have a real tendency to overreact on the upside and the downside. We are not rational investors. I do not believe that people make rational financial decisions! If you study financial decision-making you will find that human beings are irrational in a very predictable manner.

Value investor and niece of legendary investor John Templeton

We tend to see two scenarios that come up time and time again. The first and most common scenario is that security prices become inefficient or show large departures from intrinsic value when there are few investors paying attention to the company. The second is a crisis situation. Uncle John always had a desk-plate in his office that said 'trouble is opportunity' and that's very much how we see the markets.

Value investor and niece of legendary investor John Templeton

You actually see behaviours that show this when people say, 'Oh don't show me that photograph or film, I can't bear to watch that because I love my steak!' When else would we say that? Would you hear people saying, 'oh don't show me those child labour photographs because I love my nighties!' These behaviours are an admission that we know something is wrong.

Founder and President of People for the Ethical Treatment of Animals (PETA)

Imagine you have to walk through a field that has a few land mines scattered through it. If you walk through it and nothing happens, it seems there is no danger. If you walk across it enough times, you'll step on a landmine. Traditional risk management simply fails to account for the fact that the most dangerous risks are those which occur infrequently and don't show up in track-records.

Author of Market Wizards & Hedge Fund Expert