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When it comes to investing, logic appears to give way to lust, according to a study by a Stanford University professor, Bloomberg News reports. The professor, Brian Knutson hahaha8211; who may be at the forefront of the field of neurofinance hahaha8211; discovered that the same neural network located in the brain's frontal cortex that control the pleasure centers at play during sexual activity, stimulation from drugs, is also at work when making investment decisions. Knutson suggests that investing, like sex, can cloud one's reasoning, which is why some people are winners and some losers in the market.
"The brain's scientists are the wave of the future in the financial world," Daniel Kahneman, the 2002 Nobel Prize winner in economics and a pioneer in behavioral finance, told Bloomberg News. "You'd better pay very serious attention to them."
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