By: Linda Geddes | Brain activity data may improve stock market forecasts, study shows | Neuroscience | The Guardian
US research suggests scans offer better price predictions than the actual choices investors make
From never trading during the first 30 minutes, to not returning to a stock for a third time, financial investors have a stack of superstitions for predicting stock price changes. Now neuroscientists may have hit upon a more accurate prediction tool: scans of people’s brain activity just before they make investment choices.
A study in the Journal of Neuroscience suggests brain activity may be a better predictor of stock price changes than prior market trends, or the actual stocks people decide to invest in.