There Is Always A Greater Fool

This week’s edition of the Intelligent Investor centers on the growing field of behavioral finance.  Since the Dutch Tulip Bulb Bubble of the early 1600’s, traditional economic theory has struggled to explain why markets become emotional and create bubbles. At the center of their failure is their alliance on rational behavior and numerical data. Emotional human behavior cannot be captured on the spreadsheet. The Zweig article cites the research conducted by a group of psychologists and n...