Can we understand the illusion of cause and effect in investing
18-Jul-2023•Dhirendra Kumar
Anand Kumar
Several decades back, a particular incident sparked Daniel Kahneman's journey toward ground-breaking discoveries, ultimately leading to the birth of behavioural economics as a widely accepted field. Despite being a psychologist, Kahneman was honoured with a Nobel Prize in Economics for his pioneering contributions. However, for us investors, this story sheds light on how we can be misled into believing we are correct, even when we're off the mark.
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