Financial alchemists and financial shamans

Area of Science:

• Behavioral Economics
• Economic Anthropology
• Sociology of Finance

Background:

• Professional money management is characterized by a perceived low skill requirement contrasted with exceptionally high compensation.
• Existing explanations for this phenomenon primarily stem from economic and psychological perspectives.

Purpose of the Study:

• To propose and explore an anthropological explanation for the high salaries and perceived low skill requirements in professional money management.
• To introduce Singh's theory of shamanism as a framework for understanding financial professionals' roles within the global economy.

Main Methods:

• Application of Singh's theory of shamanism to the field of professional money management.
• Analysis of financial professionals' behaviors through an anthropological lens, focusing on perceived traits, rituals, and practices.
• Comparative analysis with economic and psychological approaches to market behavior.

Main Results:

• Financial professionals can be conceptualized as "shamans" of the global economy.
• These professionals cultivate an image of superhuman abilities.
• They employ rigorous initiation rituals and rely on esoteric divination practices to maintain their status and influence.

Conclusions:

• An anthropological perspective, particularly shamanism theory, offers a valuable supplement to traditional economic and psychological models for understanding financial markets.
• This framework helps explain the perceived disconnect between skill and reward in money management.
• Further research can explore the cultural and symbolic dimensions of financial markets.