The new behavioral science experts “speak” in quantitative mathematics—a language more cryptic than either the American Navaho Code Talkers or Germany’s Enigma Code. Main Street investors have trouble enough understanding a simple formula explaining the inverse equation for the relationship between interest yield and bond prices. The simplest math explanations go over the heads of 99.9% of all Main Street investors. The more sophisticated, the more cryptic, the more incomprehensible, the more valuable and secretive quants become about their equations, the more they detach from Main Street America and disappear into the shadow banking system … and the more they dominate the markets with their incredible weapons.
In recent years behavioral finance has rapidly grown beyond focusing on emotions, psychology, brain scanning, and an understanding of the irrational investors mind at work. Today behaviorists accept as fact that investors are irrational, both in short-term trading decisions and long-term bull/bear cycles. This is a historic shift: Earlier behavioral finance psychologists sought to help individual investors improve their investing skills by controlling their emotions and accessing rational skills. In recent years the emphasis has clearly shifted.
Today the allegiance and expertise of behavioral scientists is under secret proprietary contracts with Wall Street, and they’re taking advantage of the vulnerabilities of the masses of irrational investors in the market. In short, behavioral finance is no longer the domain of psychologists: Quant mathematicians have taken over and are developing algorithms that begin with the assumption that markets are irrational. Today they have one key goal, find “alpha,” the profit edge in taking advantage of market inefficiencies. This shift from personal psychology to impersonal mathematics, neurosciences and computer technology is cementing Wall Street’s control over markets and investors.
Forget 2045, “The Singularity” is here, now, today—Wall Street’s “robots” rule!
What the #@%& is “The Singularity?” Remember Ray Kurzweil. Inventor. Entrepreneur. Futurist. Artificial Intelligence genius. Author: The Age of Spiritual Machines: When Computers Exceed Human Intelligence. His latest: The Singularity is Near. How near? Not till 2045 when the human race “breaks the shackles of its genetic legacy and achieves inconceivable heights of intelligence, material progress and longevity.” That’s Kurzweil’s Law of “accelerating returns,” where material progress rockets into the future faster than Moore’s Law, thanks to AI and robotics … forget 2045, tell Kurzweil the “Singularity is Now!” (More)