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Wednesday, April 16, 2008

Hormones Affect Trades

Researchers at the University of Cambridge in England have "discovered" that testosterone - the male sex hormone, seems to affect stock trading activity. They further conclude that elevated testosterone levels over several days can result in irrational risk-taking in the stock market. (;_ylt=AqpLpbomLAUGDgsMqCriOQys0NUE)

Now I'm no genius, but it seems to me that this isn't news. We have known for centuries that men who let their hormones run wild tend to make poor decisions ... and that can include irrational risk taking. It may apply to the stock market. But it applies to driving, relationships, business deals, sports, and virtually every other aspect of life. So my first reaction to the researchers at Cambridge was just a simple, "Duh!"

But reading on in the article, they are quick to recommend that we would do well to have more women and older men doing the stock trading. How does that sound for a solution? Let's have women and old men run the world, and give them the only responsible jobs. Okay, now I'm even less impressed. (Who knew that was possible?)

Can I go to Cambridge to help their researchers get some common sense about life?

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