Adler (co-editor of Understanding American Economic Decline
), a behavioral finance expert, explores the psychology of how we make financial decisions and argues that when it comes to investing, our intuition might lead us astray. The author surveys the mechanics of decision making in a variety of arenas—gambling, sports, health care and credit card selection—and homes in on the advanced analytical techniques used by sophisticated investors. He provides psychological profiles of Wall Street CEOs and surveys the current crisis with an optimistic bent—providing strategies for investors and businesspeople to escape their evolutionary propensity for “snap judgments” and become more cautious where their money is concerned. Adler’s argument is illuminating and reveals that, when it comes to investing, we should always have second thoughts about our first impressions. (July)
