Older Investors Prone to Mental Misfires While Playing the Market,
Unless you keep your mind fresh…with bridge.
*Note I’ve linked to a similar video before.
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Introduction (Via Science Daily)
Old age traditionally brings with it respect, experience and wisdom. But when it comes to making risky financial investments, an older mind is likely to make more mistakes than a younger one, Stanford psychologists say.
In a paper published in the Journal of Neuroscience, the researchers show that older investors make more errors when picking stocks compared to younger people playing the market. And that’s not because of senility, memory lapses or other cognitive declines often associated with growing older.
Instead, the problem rests with a senior’s ability to estimate value.
After having 54 men and women between the ages of 19 and 85 play an investment game while their brains were being scanned, the researchers found that older subjects were more prone to mental misfires while deciding to invest in one of two stocks.
Functional magnetic resonance imaging results showed that greater variability or “noise” in a subcortical region of older people’s brains was related to making the investment mistakes. This subcortical region — the nucleus accumbens — is critical for evaluation, while higher cortical circuits are more important for storing symbolic information like numbers and words.
Finding (via Science Daily)
“When we looked at their neural activation we didn’t see problems in memory circuits, but we saw a noisier signal in value circuits,” said Brian Knutson, associate professor of psychology and neuroscience.
Click Here To Read: Older Investors Prone to Mental Misfires While Playing the Market,
