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"Emotizing" Your Investments

  • Anup Bansal
  • Apr 4 2012
Estimated reading time: 5 minutes 57 seconds

"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,...

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