Sticky Intuition

Making financial decisions is rarely simple. Both spheres of the brain are involved thereby using both intuition and analysis- feeling and thinking. One of the problems , however, is that intuition can be "sticky" . That is- intuition can be stuck on a wholly incorrect notion and this "anchoring" tends to survive for long periods of time. This plays out in a number of different ways including being stuck on imaginary asset values (for real estate, individual stocks , etc) as well as rates of return, withdrawal rates and so on.

The most important aspect to remember is that very often financial decisions are aimed at either avoiding regret or achieving pride.