But what if I could take a drug that would enhance the chances of achieving a better return on my stocks? And it wasn’t illegal or dangerious. Someday I may be able to.
A new field called “neurofinance” – which adds biology to the mix of economics and psychology – is working on it. Claremont Graduate University is the first in the world to offer a Ph.D. specialization in neuroeconomics. It’s called The Center for Neuroeconomic Studies.
Of course, much like a stock evaluation, half say buy and half say sell. Brian Knutson, a professor of neuroscience and psychology at Stanford, believes that neuroscientists may develop psychoactive drugs or neuroceuticals, that make people better, more profitable traders. Zach Lynch, managing director of NeuroInsights, believes such drugs may be just a few years away. “The whole investment community will be scrambling to get these things,” Lynch says.
On the other hand, Alan Greenberg, the former chairman of the executive committee of Bear Sterns has said, “There’s smarts, there’s guts and there’s instincts. The other stuff – behavioral, neuro, whatever they call it – is horseshit.” (Note to self – Bear Sterns went belly-up in 2008).
For now, I don’t need Prozac. Or Viagra. But, looking at my portfolio, I sure could use some help in that area.