Familiarity Bias vs. Ambiguity Effect

make the unknown to a known and know how to take care of my own business

Or otherwise known as reliance on old-fashioned financial institutions and outdated economic structures.  Partly, it is due to habit; partly, because of our concerns about liquidity; and partly, because we think that it is always risky to experiment with new things where we might lack…

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Not-Invented-Here-Bias

saving and investing should be boring, find excitement somewhere else

Last week I wrote about expensive Mutual Funds / Unit Trusts and their cheaper (and better) alternatives called Exchange Traded Funds (ETFs). You still don’t buy it. Ok, that might be my fault because I am simply not convincing enough…

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Greed or need?

girl wants to grow

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…

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Neglect of prior base rates effect

tomorrow starts now; start an ETF savings plan

This is the tendency to fail to incorporate prior known probabilities which are pertinent to the decision at hand. Caution: Don’t read on if you are 40 years of age and above! Here’s an interesting question for the rest of you: Why aren’t more young people…

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Unpredictability Ignorance

It’s not so easy to be active in the stock market. Because when people I meet learn that I make my money predominantly from the abundant stock market, they—more often than not—flood me with questions on my prediction of the future trends and…

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