Thinking Slow At PMA
by Paul Snitzer
How is it that the Wall Street Journal was able to report earlier this year that for most investors “losses tend to hurt more than gains feel good”? How could such a sweeping statement be made about the weighting of losses and gains in the hearts and minds of millions of investors?
The answer to these questions may be found in two books, MisBehaving, The Making of Behavioral Economics, by University of Chicago Booth School of Business Professor Richard H. Thaler, and Thinking Fast and Slow, by Daniel Kahneman, a Professor of Psychology at Princeton University and the only Ph.D. in psychology to receive the noble prize in economics.