A plethora of academic research has been conducted to determine rational patterns of which investments will provide optimal portfolios and returns. However, one area of research that is often ignored in these studies is how the human brain reacts to money and throws off the research. These reactions from the brain can prove detrimental to financial well-being.
The human brain is wired to react emotionally to all events before it begins to think logically. Advertisers are aware of this in order to make a product more appealing because humans base their decisions on desire. The wants over the needs makes investors often base a decision on feelings that arouse emotions, and often that feeling can take precedence even if in the face of suffering a financial shortfall. READ FULL ARTICLE
