Irrational humans cause issues for Rational Markets Theory
Human behavior can be an odd thing, and it’s something that can drastically affect important parts of our lives, including our economy.
“Even markets with some rational participants can behave irrationally. Speculation can move prices around for irrational reasons, and rational traders often either can’t or won’t bother to correct them,” according to a Bloomberg article that cites the research of Matthew Ringgenberg, associate professor of Finance.
Read more about rational markets — and the irrational humans that influence them — in BloombergView.
