Behavioral Finance

LA NUEVA MENTE DEL MERCADO: CÓMO LA IA ESTÁ REVOLUCIONANDO LAS FINANZAS DEL COMPORTAMIENTO

Irrational Investors AI, Behavior, Inversiones, Inversores y Gestores, Valoraciones , , , , , ,

Artificial intelligence is a double-edged sword in the world of finance. It offers an incredible toolkit to diagnose and correct our most ingrained behavioral flaws, potentially making investors more successful. Yet it also introduces novel risks by becoming an actor in the market itself, complete with its own systematic machine biases and the frightening prospect of algorithmic herding. The line between human and machine decision-making in finance is blurring, creating a new market ecosystem defined by their interaction. The new market mind is here, and whether it leads to a more rational market or new forms of systemic fragility will depend entirely on the behavioral wisdom we embed in its code.

Summer readings – authors worth to be read

Irrational Investors AI, Análisis/Ideas, CORPORATE CULTURE, Educación, Health, Inversiones, Inversores y Gestores, LEADERSHIP, Libros, productivity, Psicología, Valoraciones , , , , ,

Looking to read this summer and actually make it worthwhile? This isn't another "top 10 books to read" list. We're taking it a step further. This summer, don't just pick books. Pick minds. Choose authors whose thinking will challenge yours, reshape how you work, decide, invest, and make sense of the world.

Why Even the Smartest People Make Predictable Mistakes…

Irrational Investors Behavior, Inversiones, Inversores y Gestores, Psicología , , , , , , , ,

Why do even the smartest people make predictable mistakes? Because the trap isn’t in the data — it’s in how we interpret it. Representativeness, availability, anchoring, overconfidence, illusion of control... These aren't flukes. They're systemic biases. Kahneman and Tversky called them out decades ago. Yet we keep falling for them — in investing, in business, in healthcare, in public policy.

Contrarians by Choice, Herds by Design

Irrational Investors Behavior, Forecasting, Inversiones, Inversores y Gestores, Psicología, Valoraciones, Value , , , , , , ,

"Be a contrarian." It is the whispered mantra in trading rooms, financial forums, and among many investors who take pride in it. It sounds sophisticated, daring, and hints at the secret to outperforming the market. It evokes images of lone wolves bravely defying conventional wisdom to uncover hidden gems and achieve extraordinary returns. But is this contrarian ideal a true reflection of market reality? Or is it, instead, a more complex and paradoxical dance between individual conviction and collective influence? Every investment decision is simultaneously a contrarian act and an adherence to the herd. Let’s explore this seemingly contradictory truth.

Can AI Be More Reasonable Than Humans and Human-AI Teams?

Irrational Investors Inversiones , , , , , ,

“AI tends to outperform not only humans, but human-AI teams. One study, a 2019 preprint meta-analysis conducted by researchers at the University of Washington and Microsoft Research, looked at a number of previous studies in which decisions made by AI systems alone were assessed against “AI-assisted” decisions made by humans. In every case, they found … Sigue leyendo Can AI Be More Reasonable Than Humans and Human-AI Teams?

Understanding Market Biases: Navigating Investment Turbulence

Irrational Investors Análisis/Ideas , , , , , , , ,

Navigating the turbulent waters of investing? Beware the siren song of cognitive biases! Our minds play tricks on us, distorting reality and clouding our judgment in the financial markets. As the diagram shows, our perspective can swing wildly from pessimism to optimism, often missing the mark of true market reality. But fear not! Time is … Sigue leyendo Understanding Market Biases: Navigating Investment Turbulence