Hormones ‘may fuel market crises’
[i]Hormone surges among City traders could be partly responsible for driving “boom and bust” economics, say researchers.
A Cambridge University team found testosterone levels were directly linked to the profit they made.
The Proceedings of the National Academy of Sciences study also found levels of the stress hormone cortisol could affect the risks they took.
A psychologist who works with investment bankers said it may help explain seemingly irrational behaviour.
The Cambridge study measured testosterone levels in a small group of male City of London traders at both 11am and 4pm, and matched these to the levels of profit or loss recorded for that day.
They found that daily testosterone levels were significantly higher on days when traders made more than their average profit. [/i]