Today's "Planet Earth Report" --Instagram Feed of the 6th Mass Extinction in Photos
"Navigating Alien Oceans" -- Creating NASA Submarines to Operate in Titan's -300 F Ocean of Methane and Ethane

Today's Top Science Headline --The Science of Human Herd Behavior: "How to Bear a Bull Market"

Bear_market_shutterstock_271816790_1
 

After the downs and ups of the markets in recent days, journalist Simon Makin spoke to neuroeconomist and psychiatrist Richard Peterson, managing director of MarketPsych research, whose most recent book, Trading on Sentiment: The Power of Minds over Markets, explores the role of crowd psychology in securities pricing, using an analysis of social media data about what underlies violent downs and ups of trading.

What does yesterday’s market downturn say about the fickleness of market psychology and how people react when they perceive a threat to their wealth? writes Makin in today's Scientific American.

 

The U.S. stock market plunged Monday, with the Dow Jones falling nearly 1,600 points at one point, the biggest single day drop in its history. It then turned around and regained 567 points on Tuesday. What the remainder of the week holds in store is anyone’s guess.

Many experts had been forecasting a decline for months after a prolonged upswing resulted in a series of record highs. Several factors are likely to have been involved. The Bureau of Labor Statistics January jobs report, released on Friday, was almost certainly one of them. It generated worries about inflation and bond yields, together with concern The Federal Reserve may raise interest rates faster than expected—events that may have “spooked” the markets.

Markets translate the decisions of millions of people into a price for a stock or bond. Like a spooked crowd in a public place, investors tend at times to run in the same direction—let’s all play the lottery or let’s escape the burning movie theater.

The work of visionaries such as Nobel laureates Richard Thaler and Daniel Kahneman has demonstrated humans do not operate as rational agents, as assumed by classical economics. From this realization have emerged disciplines such as behavioral economics, neuroeconomics and the like.

Continue reading...

 

Recommended Space & Science Headlines

"Alien Minds" --'Artificial Intelligence Is Already Out There, and It's Billions of Years Old' (VIDEO)

Stephen Hawking: Wake Up, Science Deniers! --"Earth is Morphing into Venus" (WATCH Today's 'Galaxy' Stream)

"Evolutionary Leap?" AI is Mimicing the Human Brain --"But Several Orders of Magnitude Faster and More Efficiently

China Creates a Laser of Mind-Boggling Power --"Could Rip Space Asunder, Breaking the Vacuum"

"Stop Saying That Dinosaurs Went Extinct. They Didn't"

 "300-Million Nuclear Bombs" --New Insights Into Global Impact of Titanic Chicxulub Mass-Extinction Event

Comments

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)