Intricate and complex, humans are a highly developed species. Trying to understand oneself and one’s place in the universe can be difficult because the human mind is a billion-piece puzzle with many pieces.
In the world today we find obesity is on the rise. Allergies and autoimmune disorders are on the rise. And there is no evidence that modernity has changed us.
Happiness, in Aristotle’s view, was a basic human need.
Happiness may also serve a purpose in our lives today.
We may learn a lot from Aristotle’s writings, yet he omitted an important point. It’s a fact that few people are willing to face these days.
Despite our best efforts, we are not supposed to be deeply contented, industrious, altruistic or reasonable.
The brain which functions to process external and social inputs creating thoughts, emotions to produce behavior is at the center of having happiness.
Research has found that thoughts and emotional patterns can be traced back to parts of the brain which may it is believed to be responsible for imagination.
History and research has taught us that to this day when complicated financial situations arise, they are beyond our brains’ capacity to comprehend, remember, and forecast over any completion process time frame.
The rational and irrational aspects of our personalities, as well as our introspection and impulsivity, all serve our DNA.
In several ways, humans stand apart from the rest of the natural world. As a species, we not only interact with but also shape our surroundings. We create our own reality by influencing the environment around us.
It has been suggested that the stock market and herding behavior are linked (Sornette and Johansen).
Here is what they think:
“Instead of the usual interpretation of the efficient market hypothesis in which traders extract and incorporate consciously(by their action) all information contained in market prices, we propose that the market as a whole can exhibit an ‘emergent behavior’ not shared by any of its constituent[s]. In other words, we have in mind the process of the emergence of intelligent behavior at a macroscopic scale that individuals at the microscopic scale have no idea of.”
Smith, Suchanek, and Williams  conducted 60 laboratory market simulations using as few as a dozen volunteers, typically economics students, but in other studies companies were involved. After the simulated trading day, the subjects received the same perfect information of dividend prospects and then an actual announced dividend, which could vary more or less randomly but which would average a specific amount, at the end of the simulation. A boom-and-bust market pattern was consistently observed in these tests, despite the fact that the subjects had complete input sets.
Self-preservation requires not just the pursuit of positive values, but also an effort to avoid negative ones. However processing includes emotions and it is believed that emotional behavior is reflected in herding behavior and price patterns.
A majority of the time when the optimal opportunity to purchase or sell is at hand in the market, even the individual who thinks he should take action experiences a significant emotional pressure not to do so…their ability to execute a decision has been overwhelmed by the collective views of the market which has become a herd in price discovery to the downside.