Neuroscience and Stock Market Irrationality

This chapter explores the cognitive biases that lead to irrational investment decisions in the stock market, highlighting the conflict between human psychology and rational financial advice. It discusses how evolutionary mental shortcuts shape our decision-making processes and introduces the concept of 'money demons' that affect our relationship with wealth. Through anecdotes and critiques of the investing industry, the chapter reveals the persistent challenges investors face, including the overconfidence in stock-picking abilities and the consequences of a scarcity mindset.