Human Reaction to Market

This article is available at QuaSyLaTic Knowledgebase, more specifically at Investment Knowledge - Unit Trust

HOW REACTION TO MARKET USING SEEMINGLY LOGICAL THINKING CANNOT MAKE US SUCCESSFUL INVESTORS.

• Human reaction to market, though based on seemingly logical thinking, can be highly irrational!
• During good time or bull market, logical thinking picks up all the good signals and investors continue to chase the market till the bubble bursts.
• Like-wise, during bad time or bear market, logical thinking looks for bad news and totally avoid the market and misses the investment opportunity.
• This presentation demonstrates the above new insight using some known events / cases.