Quote of the day by Richard Thaler: "If we use prediction as the measure of a model, traditional finance makes precisely wrong predictions"

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• Economic TimesLean R·2h ago

  Quote of the day by Richard Thaler: "If we use prediction as the measure of a model, traditional finance makes precisely wrong predictions"

  Richard Thaler challenges traditional finance’s rational-investor assumption, arguing that psychology, emotions and behavioural biases shape markets. Fear, greed, overconfidence and loss aversion can drive bubbles, volatility and mispricing, making investor behaviour essential to understanding financial markets.

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