Investor Psycology

An economic crisis makes it difficult for the business environment to thrive. It affects producers, consumers, and investors. It plays a domino effect and affects employment, consumer spending, profits, credit negatively. It leads to the rise of economic bubbles only to bring a crash soon. [...]

Greater Fool Theory & Indian Real Estate

The Greater Fool Theory is an investment belief that says there will be an investor always to buy an asset however overpriced it is. Thus even if the original investor had paid a higher price than was necessary, he would make a profit as “a [...]

The Art of Thinking Clearly in Personal Finance

Warren Buffett says "Until you can manage your emotions, don't expect to manage your money". Rolf Dobelli in his book, 'The Art of Thinking Clearly' has pointed out 99 cognitive errors ('systematic' deviation from logic) and  behavioral traits that we use in our day to day thinking [...]

Movement in the markets depend on 2 factors – One is the actual numbers like growth rate, company performance, prices of commodities and local and global economic conditions. The second is the behaviour of the market participants that is the people and their beliefs, sentiment, [...]

Keep Away from Too Much News

I am sure most of you have made New Year resolutions and are on your way towards achieving them. I would suggest that you add one more resolution - 'Keep away from too much news'. Read on to find out why I want you to [...]

Midlife Crises & its Financial Impact

What is midlife crisis? Midlife crisis is behaviour usually displayed by people between the age of 35 and 50 years which is uncharacteristic of them or even inappropriate.  Some people identify the crisis and manage it well by gracefully accepting the fact that they are growing [...]

We live in the world of everything 'Instant'. We can live off instant noodles and coffee. We like something that we see and can have it delivered to us by ordering online. We can acquire the latest gadgets as soon as they are launched or [...]

Throwing Good Money After Bad – Sunk Cost Fallacy

Sunk cost is defined as a cost that has been incurred in the past and cannot be recovered. You must be surprised all of us do this mistake - levels can be different. In everyday life, we tend to think that we make rational decisions. [...]