Financial Heuristics

Tim Harford has an interesting post on financial rules of thumb or heuristics such as (a) the percentage of your portfolio not invested in stocks should be set equal to your age and (b) if you are distributing funds amongst asset classes just distribute them equally.

One of the leading experts in heuristics is Gerd Gigerenzer. Below is a video where he talks about heuristics and their use in economics. 

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