Monday, April 17, 2006

Complex or simple

How do people sift through all the information that is available.
"In his book, Six Impossible Things Before Breakfast: The Evolutionary Origins of Belief, Professor Lewis Wolpert postulates that it is mankind’s use of tools that may have led to its belief structures
.

Philip Coggan in the FT points to some simple rules that follow market fashions. "Hard to keep a clear head: "But the key is always that the price of the chosen asset is going up. That movement gives investors the essential confidence to believe in the story and indeed attracts others who fear they are missing the bus. The price movement “proves” they are right and the sceptics wrong."

There are many other methods that try to distill the complexity into something as solid and simple as gold.

No comments: