The Emperor Has No Clothes!

wealthymattersWhen you sell a stock,” I asked, “who buys it”? He answered with a wave in the vague direction of the window, indicating that he expected the buyer to be someone else very much like him. That was odd: what made one person buy and the other sell? What did the sellers think they knew that the buyers did not? Since then, my questions about the stock market have hardened into a larger puzzle: a major industry appears to be built largely on an illusion of skill. — Daniel Kahneman, Nobel Laureate.


About Keerthika Singaravel

6 Responses to The Emperor Has No Clothes!

  1. Money Saving says:

    Add in the financial services and financial advisors and you have a game built on a game. Truly the emperor has no clothes 🙂

  2. MoneyAhoy says:

    Throw in the whole financial services industry and financial advisors and things really get interesting 🙂 It’s a game built on a game!!

  3. Alex Jones says:

    Most of the stock exchange dealing is now built around AI systems rather than human skill or decision-making.

    • Many institutional investors and techs savvy sophisticated investors use bots to trade.They have accepted the limits of human ability to consistently perform well.
      However there are notable exceptions like Warren Buffett,who are celebs in their own right.
      Now there are sales people who use the aura surrounding such figures to sell their own services/advice.Its this advice that cognitive psychologists question.

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