2. Horizon Preference: How Mood Affects Our Decision Making

Although I found the principles of socionomics and the causal relationship between mood and events of great interest, I struggled for a long time with specifically how and why mood could alter outcomes. This led me to look very closely at how mood affects our decision-making processes and, more specifically, what we see as logical choices (our preferences) based on our various levels of confidence. In this chapter, I discuss these topics.

To see how mood directly affects our decision-making processes, I am going to borrow from one of the best artificial mood creators I know of: the rollercoaster. Nothing does a better job of creating what I call self-assured uncertainty (where we are ...

Get Moods and Markets: A New Way to Invest in Good Times and in Bad now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.