Market Review and Trends
Response to Risk is Physical
By Investment Moats  •  June 24, 2014
I wrote sometime back on how I appreciate risk, volatility and that part of my system is to understand it more. This includes being more of an active listener to articles on this area, how to create a better system for it (See 6 and 7). Response to Risk is Physical w768 The New York Times has this interesting article titled The Biology of Risk. The most critical take away for me was how our body reacts to a level of uncertainty that you cannot see the clear path. This generates a greater level of cortisol:
Our challenge response, and especially its main hormone cortisol (produced by the adrenal glands) is particularly active when we are exposed to novelty and uncertainty. If a person is subjected to something mildly unpleasant, like bursts of white noise, but these are delivered at regular intervals, they may leave cortisol levels unaffected. But if the timing of the noise changes ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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