The factory default settings of the human brain were essential in the past to secure our survival.
In modern times, however, that inner con man plays tricks on us that can end quite costly.
Yaaawwnn. The stock markets in the last few weeks have been rather boring and uneventful. The US-market (measured by the S&P 500) has even entered an unusually long period of volatility contraction. The daily market moves up a bit and…
The desire to feel like we’re in control seems to be a very basic human need. Are you in control? Do you like to control your environment? Well? Were you successful in that endeavour? C’mon, be honest. Because—Control—is an illusion! Let me give you an example…
My brain is flawed. It is a flawed lens through which I see reality. This is true of both mouse brains and human brains. But a human brain is a flawed lens that can understand its own flaws—its systematic errors,…
In my previous post I shared a few thoughts on probabilities and statistics. I wrote about disregarding probabilities in decision making, ignoring small probabilities and not over-weighting small probabilities. A tough act to follow. I am totally guilty of failing…
Gambler’s fallacy is a term we often hear. What is it exactly and how does it affect what you do with your money? It is the belief that future events will be shaped by past events, even when the two…
This post has nothing to do with Brexit, UK’s ego, or the unfairness in life that the older generation always decides on things the younger generation has to live with. But then, maybe it does … Let’s visit another continent…
The GSS – the Great Singapore Sale is upon us again. And I am not talking about the Singapore stock market here. It’s an opportune time to remind ourselves of that one emotion that is the cause of the lack…
I have been fooled. I am convinced. It was about one year back when I was sourcing for a new family TV set. Off I go to one of those notorious big (presumably) discount retailers. After I mentioned that I…
I don’t know. The human refusal to say “I don’t know” has huge consequences, for example, not getting good returns from your investments in the stock market, because there is a strong correlation between knowledge and humility. As such, the best investors are…
A few days back I wrote about “Am I saving enough?” Thank you for all your comments. I am just afraid that those people with their benchmark savings ratios are not really representative of the regular guys. Could it be…