How should we use the cash payouts from the government? The answer is it should be no different than the money we earn. However, in reality, we are susceptible to mental accounting.
In the recent market crash, other assets which are considered safe havens had also joined stocks in a race to the bottom.
People start hoarding when they panic. Is this irrational or completely rational? Game theory might give us a clue
Sometimes, we value things we own more than what we would pay for if we did not own them. This is the kind of bias we should be aware of.
Forgive me for the clickbait-ish title. Despite what it says, the topics I would like to highlight are irrational behavior in financial markets and a quick analysis of the coronavirus situation. This is not another prediction of a 2020 market crash. It has been on the news lately, the coronavirus also known as the Wuhan… Continue reading Pandemic and Panic: Will Coronavirus Crash the Market?