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Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day.

I'm your health care show host Christine Hargis, and it is April 5th, 2017.

I have Motley Fool Healthcare Contributor Todd Campbell on the line. Todd, what's new?

What are you writing about lately?

There's just, there's so much going on right now,

especially in the health care space that you and I have talked about that I think it's going to be a really

fun show today because we're going to kind of step back from everything and we're going

to help investors get a better idea of how better to maybe digest all of that information

and turn it into into profit.

Yeah, today's episode is going to be a bit different than usual as you mentioned

and I'm kind of excited for it. We are going to

be exploring cognitive biases. So why is the human brain sometimes, maybe even most of the time,

not perfectly logical? And if you think about this kind of explains why we're able to make money in the stock market to begin with

I mean there's if you've studied economics you know the efficient market hypothesis that all the information

out there is already factored in and things are priced exactly as they should be.

But we also know that there are ways to make more money than the average stock index in the market.

And that's because people control the market and they are not always rational.

And if you think that psychology doesn't actually have that much to do with investing,

consider that in 2002, the winner of the Nobel Prize in economics, Daniel Kahneman, was actually

a psychologist. And in fact, his work has influenced just about everything we're going to talk about today.

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