Wall Street Wants To Train Your Brain

If going really wild -- so out there that you wouldn’t tell your friends -- means moving from a three- month Treasury bill to a one-year certificate of deposit, you’re probably suffering from Irrational Prudence Syndrome, a non- medical but widespread condition that results from overexposure to volatile markets. IPS is characterized by extreme aversion to equities and uncontrollable urges to stuff cash into government- guaranteed mattresses, be it a CD, a Treasury security or even a checking account. Left untreated, IPS can lead to poorer investors -- and frustrated advisers. It’s a syndrome financial firms dread, and one they are determined to cure.