Philip Ball – Critical Mass

ANIMAL SPIRITS

Keynes, however, doubted that humans are readily capable of optimal or even particularly rational choices:

a large proportion of our positive activities depend on spontaneous optimism rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities.

In other words, you can devise all the complicated formulas you like, but in the end most of us – including traders – are guided by instinct and impulse, by what Keynes called ‘animal spirits’.

© Philip Ball – Critical Mass (excerto) – Arrow Books

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