The behaviour of recent stocks (GME) is part of an ongoing trend in which investors and economists stand by and watch the economy behave in entirely unpredictable ways. It certainly seems that all of the economic models we hold most dearly are no longer congruent with reality.

The solution: Psychology.

But why?

We have reached the point where the study of psychology has invaded almost every discipline. Sports teams employ in-house psychologists, governments consult behavioural science gurus, and supermarkets borrow strategies from neuroscience to boost their sales.

Economics is no different, with behavioural finance steadily gaining in popularity. Academic psychologists and economists…

Photo by Sharon McCutcheon on Unsplash

‘If you say that getting the money is the most important thing, you’ll spend your life completely wasting your time. You’ll be doing things you don’t like doing in order to go on living, that is to go on doing things you don’t like doing, which is stupid…Better to have a short life which is full of what you like doing than a long life spent in a miserable way’— Alan Watts.

“Money won’t make you happy” seems to be one of the most common counterarguments made in the face of wealth, especially by those who don’t have it. As…

Capitalism is a system in which “the vast majority of society’s wealth and resources is concentrated in the hands of a tiny few. This doesn’t happen because rich individuals are especially clever, hardworking or brilliant, but because of the way the society is organised”, Gareth Bromhall writing on behalf of Socialist Students UK.

When I applied to attend university seven years ago, I spent the summer preparing for what I thought would be the most intellectually stimulating time of my life. …

Matthew Machin

Head writer and researcher in a hedge fund-backed financial psychology series, which is distributed to some of the largest investors in the world.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store