Elena Ortiz-Teran, Ibai Diez, Joaquin Lopez-Pascual. An ALE Meta-Analysis on Investment Decision-Making (Brain Sciences).
It is claimed that investment decision-making should rely on rational analyses based on facts and not emotions. However, trying to make money out of market forecasts can trigger all types of emotional responses. As the question on how investors decide remains controversial, we carried out an activation likelihood estimation (ALE) meta-analysis using functional magnetic resonance imaging (fMRI) studies that have reported whole-brain analyses on subjects performing an investment task. Our findings support the notion that investment choices are emotional decisions that take into account market information, individual preferences and beliefs.