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  1. www.terryburnham.comTerry Burnham

    Apr 7, 2024 · December 2023, Chicken Little Portfolio Performance. Chicken Little a failure? A senior Goldman, Sachs & Co. executive recently said, "I'd be retired if it weren't for Terry Burnham." He is right in that I have been resolutely bearish for more than a decade while risk assets have soared.

  2. Terry Burnham is an economist who studies the biological and evolutionary basis of human behavior. Terry has a PhD in Business Economics from Harvard University.

  3. Terry Burnham is an economist who studies the biological and evolutionary basis of human behavior. He has a Ph.D. in Business Economics from Harvard University, a Masters from the MIT Sloan School with a concentration in finance.

    • burnham@chapman.edu
    • Associate Professor
  4. Dec 25, 2023 · Terry Burnham, an accomplished economist and author, has established himself as a thought leader‍ in the⁢ world of finance with his groundbreaking theories on economic behavior. One of his key contributions is the concept of⁣ behavioral finance, which challenges traditional economic models that ⁣assume rational ⁤decision-making.

    • I Get No Respect
    • Rational Reasons For Self-Loathing
    • Isn’T It Rational to Feel Bad After Making A Fool of Yourself?
    • Neuroeconomic and Evolutionary Investing
    • Brains Built to Produce Pain
    • Darwin Made Me Lose All My Money
    • Investing with A Forager’s Brain

    How do I feel 18 months after calling for Dow 5,000? Bad. In fact, very bad in a way that may be of more than personal interest. In the spirit of the late Rodney Dangerfield, how bad do I feel? So bad that I have trouble sleeping. So bad that my family relationships are strained. So bad that my physical health has been impaired. Perhaps most annoyi...

    I am stupid, stupid, stupid. So says part of my brain (paraphrasing a line from “The Rainmaker”). There are indeed rational reasons for me to feel stupid. First, and foremost, the stock market has rallied almost every month, week, day, and even hour since I predicted doom and gloom. Beyond being wrong every moment for 18 months, I have faced contin...

    Why am I surprised that I wake up in the night, check the roaring Chinese stock market, and cannot go back to sleep? There are three reasons that a “rational” person ought not feel bad in my situation. First, I want to be wrong. If I could chose the outcome, I would select an enormous and persistent stock market rally. I do not want to see Dow 5,00...

    This is a lesson that goes far beyond me. Recent research extends our knowledge of how and why humans are built to run with the herd. This herding instinct caused us to buy houses in 2007, gold in 2011, and to sell stocks in 2009 (when the Dow was below 6,600). We seem designed to lose money in financial markets.

    A set of neuroeconomic studiesreveals the machinery that causes these problems. Ingenious scientists obtained permission to measure dopamine inside a person’s brain while that person made experimental investment decisions. The person made decisions to risk a lot, or a little, money on a series of risky gambles. They were then showed the outcome of ...

    Unlike the factual aspect of neuroeconomic science, the evolutionary explanation for our brain function is speculative. (Some scholarslabel all such evolutionary stories as ‘just-so’ stories that predict nothing.) Personally, I feel as though the world makes more sense when viewed through an evolutionary lens. To motivate the evolutionary hypothesi...

    What have we learned so far? Our brains are built for a world where the past importantly informs the future. We take those brains into asset markets where the relationship between past and future returns is weak or non-existent. Finally, running with the herd may have helped our ancestors survive and reproduce. So what? Our herd running instincts g...

  5. May 26, 2024 · Terry Burnham is a former Goldman Sachs employee, money manager, biotech entrepreneur and economics professor at the Harvard Business School. He’s the author of “Mean Genes” and “Mean Markets...

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