5.2

So, what exactly happened to Lisa? Herd Mentality Lisa was heavily influenced by the actions of those around her. She saw that her friends, colleagues, and even the media were all abuzz about investing in dot-com companies. The overwhelming consensus seemed to be that these investments were foolproof and guaranteed to yield high returns. Convinced […]

5.1

The Dot-Com Bubble: A Lesson in Herd Mentality and Overconfidence Do you remember the dot-com bubble we covered during the week 4 within the topic of ‘Understanding Risks and Returns’? This real-life example is a perfect illustration of how psychological factors can lead to irrational investment decisions due to biases. In the late 1990s, the […]

5.0

Mind Over Money: Mastering Investment Psychology When was the last time you felt like everyone around you was making a financial move that you just had to follow? Maybe it was buying the latest smartphone because everyone else had one or investing in a trending stock because it seemed like the smart thing to do. […]