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Retirement, 90, 276
Q Revealed preference, 281
Ricardo, David, 194
Queen Elizabeth Park (Uganda), 224“225
RJR Nabisco, 16, 150“151
R Roth, Al, 87“88, 90
Rothschild, Nathan Meyer, 253
A Random Walk down Wall Street
Roulette wheel strategy, 238“239
(Malkiel), 40
Rational market(s), 35“36
S
Reagan, Ronald, 86
S&P 500, 173, 200
Reagan bonds, 143, 156
Safety deposit box, 155
Real estate:
Samuelson, Paul, 194
adjustable rate mortgages, 216“219,
Sanfey, Alan, 28
221“223
Saut, Jeffrey, 184
buying behavior, 208“209
Saving money:
comparative advantage, 195“196
government debt and, 145
economic conditions and value of,
inflation effects on, 97
187“189
308 Index



currency prices and, 185“186
Saving money (Continued):
efficient market hypothesis, 40
interest rates and, 158
emotional mood swings, 175“176
personal savings rate, 71, 73“74
number of shares, 20
Savings bonds I-series, 112, 270
price to earnings ratio (P/E), 19, 199
Schwarz, Anna, 87
random component of, 32“33
Schwarzenegger, Arnold, 76, 177
slowdown in, 183
Science of irrationality, 2, 3“5. See also
trends in, 268
Individual irrationality
valuation, fairness of, 174“177
Seashells, 94“95, 102
Stock(s), 187“189
Securities Act of 1934, 216
analysis of, 171“174
Self-control issues, 33“34, 259“262
as average investments, 185“186
Self-examination, critical, 12“14
buying on margin, 215“216
Sentiment as predictor of future returns,
commodity price change protection,
45“49
109“110
Shakespeare in Love (movie), 190
Fed model, 171“174, 176“177
Shiller, Robert, 42“43
financial risk of, 279“282
Siegel, Jeremy, 40, 42“43, 160, 161“164,
inflation and, 185, 200, 201
182, 190“191
as inflation or deflation protection,
Silverman, Irwin, 241
112“113
Silver prices, 53“54
investment characteristics of,
The Simpsons, 144
200“202
Simultaneous exchange, 89“90
investment in, 1“3, 10, 159“164,
Skinner, B.F., 30“32, 277“278, 283“284
189“192, 279
Slot machines, 48
love affair with, 189“191
Smith, Adam, 38
luck and, 170“171
Smith, Vernon, 5
non-U.S. stocks, 134“135, 271
bubbles and crashes, 44
optimistic view of, 46, 49, 174, 175,
individual irrationality, 33
176“177, 183“185
supply and demand research, 38
performance in other countries,
ultimatum game, 26, 27
165“166, 168“169, 170
Social isolation, 283
pessimistic view of, 45“46, 49,
Social security fund, 71“72, 146
173“174, 176, 183“185
Society of Mind (Minsky), 20
portfolio insurance, 217“218
Socratic method, 12“13
reasons to own, 185“186
Soros, George, 133
return on, 161“164, 170“171, 186“189,
Spin control, 255
265“266
Split-brain studies, 22“23
sentiment as predictor of future returns,
Squirrel(s), 155
45“49
Stampede(s), 36“38
survivorship bias, 164“169
Stern, Howard, 28“29
tax deferment and, 186
Stewart, Potter, 264
trades, frequency of, 245“246, 248,
Stimulus-response behavior, 30“32,
261“262
277“279, 283“284
U.S. economy, compared to, 179“182
Stock price(s):
win-win outcome, 220
corporate profits and, 180“183
Index 309



price to earnings ratio (P/E), 200
Stocks for the Long Run (Siegel), 40, 42,
return on, 142“143, 175, 211“212
160, 161“164, 182, 190“191
Treasury Inflation Protected Securities
Stubbornness, 25“29
(TIPS), 111, 112, 270
Subconscious, power of, 21“22
Tulipmania, 41“42, 52
Summers, Larry, 100
Tversky, Amos, 5, 14“15, 253“254
Sun Microsystems, 42, 43, 180“181
Tyran, Jean-Robert, 100
Superstitious pigeons, 30“32
Supply and demand, 38, 205“207
U
Survivorship bias, 164“169
The Ultimate Weight Solution (McGraw),
analysis of, 167“169
182
strong form of, 169“170
Ultimate Frisbee, 257“258
weak form of, 168“169, 170
Ultimatum game, 25“29
Swingers (movie), 281
Unemployment rates, 78
T United Nations experiment, 253“254
“An Unsolved Problem of Biology”
A Tale of Two Cities (Dickens), 65“66
(Medewar), 12
Taleb, Nassim Nicholas, 170, 255
U.S. current account deficit, 116“117,
Taxes:
119, 125“127
bonds and, 200, 201
U.S. dollars. See dollar(s)
investment choices and, 200, 201
U.S. economy:
real estate and, 200, 201
condition of, 68“69
social security taxes, 71“72
government debt and, 146“148
stocks and, 186, 200, 201
growth of (see Economic growth)
Tecumseh, 51
U.S. Federal Reserve. See Federal
Testosterone levels, 28“29
Reserve
Thaler, Richard, 48“49, 51, 237, 255
U.S. government. See government
This Is Spinal Tap, 156
entries
Thurow, Lester, 68
U.S. overseas assets, 126
Tip(s), 246“248
U.S savings bonds I-series, 112, 270
TIPS (Treasury Inflation Protected Secu-
U.S. Treasury bonds. See Treasury
rities), 111, 112, 270
bonds
Tobias, Andrew, 53“54, 55
Tobin, James, 144“145, 149
V
Tooby, John, 235“236
Vitamin D supplements, 5
Top Gun (movie), 243“245
Volcker, Paul, 108
Toys R Us, 56, 58
Trades, frequency of, 245“246, 248,
W
261“262
Wages, 98“100, 188“189, 271
Trahan, Francois, 184
Wall Street (movie), 253
Treasury bonds:
Wal-Mart problem, 18, 19
Fed model, 171“172
Waterloo, battle of, 253
investment characteristics of,
Waterworld (movie), 130
200“202
Wealth of U.S. families, 72“73,
investment in, 58, 69“70
109“113
monetary growth and, 108
310 Index



Wedding toast, 152 Woods, Tiger, 13“14, 194
Where are the Customers™Yachts Wrangham, Richard, 103, 232
(Schwed), 285
Y
Whip Inflation Now (WIN), 86
Who Moved My Cheese (Johnson and Yap (Pacific island), 92“93
Blanchard), 284 Yerkes Primate Center, 233
Wikipedia, 272
Z
WIN. See Whip Inflation Now
Winner and loser study, 48“49 Zambia inflation rate, 120“121
The Winner™s Curse (Thaler), 25 Zimbabwe inflation rate, 120“121

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. 47
( 47 .)