"Emotizing" Your Investments
- Anup Bansal
- Apr 4 2012
"Emotizing" is yet another word that cannot be found in English dictionaries so let me explain the term. I have coined the term "Emotizing" to describe the process of using emotions to make decisions on investments. Of course, our behavioral biases and emotions are one of the aspects of decision-making nevertheless they play an important role. In an ideal world, all investors should go about the business of investing very logically and unemotionally as prescribed by the modern portfolio theory. However,...
Volatility is your friend!
- Anup Bansal
- Feb 6 2018
Today the Indian stock market fell by around 1.5% and has fallen by around 4.8% in the last four sessions since the budget. We all are feeling the pain of the downturn and the rise in the volatility. Just to put things in perspective, even after this correction, the Indian equity market has given a gain of 19.3% in the last 1 year and 42.1% in the last two years.What is volatility? It is the day to day unpredictability of markets. If there are too many changes in stock prices every day then the volatility...
FOMO
- Anup Bansal
- Jan 26 2018
I happened to be on Dalal Street on the day Sensex crossed the mark of 35,000 on 17th January. There was the crowd, there were cameramen, there were balloons, the environment was charged with jubilation and the celebrity was SENSEX!Then, the news cried out loud this week "....the Sensex took just five trading sessions (January 17-23) to reach the historic 36,000-level from 35,000....". And, you may have been going slow with equity investments anticipating a downturn in the market due to the high...
The Emerald Potion and Investments
- Anup Bansal
- Feb 20 2019
In "Harry Potter & Half-Blood Prince" by J.K. Rowling, there is an interesting story about the Emerald Potion which I have reproduced below:Harry: "You think the Horcrux is in there, sir?"Dumbledore: "Oh yes. But how to reach it? This potion cannot be penetrated by hand, vanished, parted, scooped up, or siphoned away, nor can it be Transfigured, Charmed, or otherwise made to change its nature. I can only conclude this potion is supposed to be drunk."- Harry and Dumbledore discuss the potion guarding...
