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Morningstar Advisor: The Lizards are Winning

April 4, 2009

Full article about overload of convoluted economic information and advisers playing on the emotions of regular investors here.

An increasing number of investors are responding not with their highly developed cerebral cortexes, but with what Bob Veres so aptly described as our lizard brain. This reptilian, preverbal remnant causes us to react to what we perceive as danger with a flight or fight response. When investors can’t comfortably assess the danger and don’t know how to evaluate whether it is getting better or worse, it is not surprising that so many have responded by fleeing equities for the perceived safety of cash.

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