Robert Schiller Examines Your Weaknesses

In a recent interview, Nobel Laureate Robert Schiller discusses how companies can mislead consumers and how the media latches on to smalls stories. His comments are based on human behavior, which is the basis for behavioral finance. His last comments are a very interesting take on investing: "We don't know the probabilities of future events. Still, you have to take action and so you do it on gut feeling. That's the world we live in. There's so much disagreement about investing, and it's because nobody really knows." Interestingly, although we greatly respect Dr. Schiller, he is still guilty of making his own market predictions.