"Mean Markets and Lizard Brains" written by Terry Burnham is a captivating book that dives into the irrational behavior of investors and how our evolutionary instincts affect financial markets. As a former investment banker, Burnham combines his expertise in economics with insights from neuroscience to reveal the recurring patterns of market bubbles and crashes.
The book explores the concept of the "lizard brain," which represents our primitive instincts for survival and reproduction. Burnham argues that these instincts often lead us to make irrational decisions, particularly in the realm of finance. He provides compelling evidence and examples, ranging from the dot-com bubble to the 2008 housing market crash, to support his claims.
One of the book's strengths is Burnham's ability to explain complex economic concepts in a manner that is easy to understand. He uses a combination of storytelling, scientific research, and real-world examples to engage readers and help them grasp the underlying mechanisms of market behavior. This approach makes the book accessible to both experienced investors and individuals with limited knowledge of economics.
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Furthermore, Burnham goes beyond critiquing the flawed reasoning of investors and questions the overall efficiency of financial markets. He challenges the efficient market hypothesis and argues that markets are inherently susceptible to irrationality and instability. This perspective provides a fresh and insightful take on traditional economic theories.
While Burnham's book may not offer concrete solutions for overcoming our lizard brains, it leaves readers with a deeper understanding of the forces at play in financial markets. "Mean Markets and Lizard Brains" is a valuable read for anyone interested in finance, psychology, and the intriguing intersection between the two fields.
What are readers saying?
Terry Burnham's book, "Mean Markets and Lizard Brains," has generated a range of opinions from readers. The book delves into the concept of behavioral finance, examining how our primitive instincts, stored in our "lizard brains," can influence our decision-making in financial markets.
Some reviewers commend Burnham's ability to simplify complex financial concepts, making them accessible to a broader audience. They appreciate his insights into the illogical behaviors exhibited by investors during market bubbles and crashes. These readers find the book thought-provoking and value the lessons and cautionary tales it presents.
However, others believe that the book lacks originality and fails to provide new insights. They argue that Burnham's work largely reiterates ideas already widely known and explored in other behavioral finance books. Some reviewers also criticize the academic and dense writing style, finding it challenging to stay engaged with the material.
Opinions are divided regarding the book's organization. While some readers praise its logical flow and easy-to-follow structure, others feel that it jumps between topics without clear connections. This makes it difficult for them to grasp the main points and fully understand Burnham's overall argument.
Many reviewers also note the author's political biases, particularly his criticism of big government and central banks. Some readers feel that these biases undermine the book's credibility and academic integrity. However, others appreciate Burnham's unique perspective, believing it adds depth to the analysis of financial markets.
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