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The Art of Choosing

Sheena Iyengar studies how we make choices — and how we feel about the choices we make. At TEDGlobal, she talks about both trivial choices (Coke v. Pepsi) and profound ones, and shares her groundbreaking research that has uncovered some surprising attitudes about our decisions.

We all want customized experiences and products — but when faced with 700 options, consumers freeze up. With fascinating new research, Sheena Iyengar demonstrates how businesses (and others) can improve the experience of choosing.

Fear in the Markets

I think there is something to be said for the idea fear-based arguments standing out in people’s minds. Highly charged, emotionally relevant information is certainly processed differently from normal information, which is why advertisers will show very happy people drinking Coke, or people having car wrecks relying on their insurers. The correlations of investor margin debt and price movements of the markets might be one way to quantify how fear impacts speculative behavior …

That having been said, I do notice a kind of cultishness to the permabears… it is an ingrained belief that organizes their thinking about markets, the future, etc. The motivation, I suspect, is a desire to belong to a special group that will be spared the oncoming calamity.

Types of People and Views on Market

What are the many types of people who disseminate their views about the market? What are the major categories that I am missing or what is a better way to classify and make this useful?”

No doubt, there is a book to be done on the subject. That said…

This list is presented in order of published appearance. A caveat: “many fall into more than one category and mobile via age and wealth changes.”

The Connected Person, who makes you feel without saying it that she/he is or will be connected to the very lynch pin of policy at the Interior or some such.

Tout, who has position and wants you in for his/her favor.

Sponsor, who advertises or sponsors programs that treat him/her well.

Would-be-manager without funds impresses with his/her knowledge/ideas for you to join.

Old lion
, who is not virile but still fights younger from replacing him/her in power/ romance.

Curmudgeon
, who hates everything modern and wants all back to old days before tech.

Spankist, a beauty but aggrieved to give spanking unless things in order her/his way; observed to be everywhere and influence growing among spankisto and spankista’s.

Iconoclast
, who is always contrary, never reads papers or travels, and feels market is wrong.

Hole-In-Shoes, who only drinks coke and eats hamburgers, never pays a fee more than 10%.

Sanctimonious, who pretends to be honest while blind to any firm dishonesty/misdoing.

Academic-Consultant
, who manipulates numbers retrospectively to allure investors.

Mystic, who looks at stars and bent keys.

Old Timer, who is guided by iron castings reports and freight car loadings and newsprint figures [sample]: all as timeless methods (non retro) with healthy respect for knowledge.

Fund Manager, who is quoted as “good buy” on stock that he/she sold bulk of before recall.

Jack of All Trades
, who explains every rise and decline due to (un)certainty about earnings and rates and other well chosen factors. Always welcome on TV because of his versatility. (more…)

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