A Simple Reason Why Markets and People are Not Rational | Exploring Markets

A Simple Reason Why Markets and People are Not Rational

"If our brain was wired for logical thinking, math would be the easiest subject and everything else would be much harder. But that's not the case. So I'm forced to conclude that our brain is not wired for logic." - Neil deGrasse Tyson

There are two things in this world, that if figured out, can probably make you money consistently over time. It could be in the stock market, in business, or at certain projects you're taking on. They are:
  1. A mathematical strategy or logical process that consistently outperforms.
  2. Or an understanding about psychology and how to exploit moments of complete irrationality.
Which one, of those two points, are you better at? Sit back and watch the first few minutes of this talk between astrophysicist Neil deGrasse Tyson and biologist Richard Dawkins.