Investment Banks Now Turn to Psychologists for Help: CNBC, October 26th 2012
“The classical models of economics make this assumption that we are all completely rational, all the time and all of finance theory is based around that,” Greg Davies, head of behavioral and quantitative finance at Barclays, told CNBC. “But we don’t have to look around us too far to realize that we’re not entirely rational all the time and, in fact, markets are driven to a very large extent — particularly in the short-term — by issues of anxiety, stress and enthusiasm.”
