詊すGOLD- Free

A Covid-Era How-To For The Money-Wise
Outlook|August 31, 2020
Lessons on investor behaviour during the unprecedented pandemic
- Lola Nayar, Yagnesh Kansara & Himali Patel
A Covid-Era How-To For The Money-Wise

BOOMS and bull runs lead to “irrational exuberance”, a term coined by Alan Greenspan, former chairman of the US Federal Reserve, in 1996. More than a century before him, author Charles Mackay explained the phenomenon succinctly in his aptly titled book, Extraordinary Popular Delusions and the Madness of Crowds. He presciently wrote, “Every age has its peculiar folly...into which it plunges, spurred on by the love of gain, the necessity of excitement, or the mere force of imitation.”

Panics and investment pandemics, in contrast, lead to another kind of herd mentality, the lunacy that too is irrational and dynamic. However, what drives it is the pain of loss, the inevitability of volatility, and a desperate need to protect savings. Only in retrospect do investors realize the bitter truth in both cases. Economist Robert J. Shiller explained this about two decades ago when he wrote that the markets do not always reflect the “sum of the available economic information”.

What he implied was that the present prices of assets might give a distorted picture of the near future. During boom times, the high prices could suddenly fall. During crises, they could unexpectedly rebound. Since both the scenarios are unforeseen, the investors end up either taking the wrong decisions or making costly blunders. This was evident when Outlook spoke to dozens of investors on how they acted and reacted during the COVID-19 crisis, i.e. in the past six months.

この蚘事は Outlook の August 31, 2020 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

この蚘事は Outlook の August 31, 2020 版に掲茉されおいたす。

7 日間の Magzter GOLD 無料トラむアルを開始しお、䜕千もの厳遞されたプレミアム ストヌリヌ、9,000 以䞊の雑誌や新聞にアクセスしおください。

OUTLOOKのその他の蚘事すべお衚瀺
Layers Of Lear
Outlook

Layers Of Lear

Director Rajat Kapoor and actor Vinay Pathak's ode to Shakespeare is an experience to behold

time-read
4 分  |
December 21, 2024
Loss and Longing
Outlook

Loss and Longing

Memories can be painful, but they also make life more meaningful

time-read
6 分  |
December 21, 2024
Suprabhatham Sub Judice
Outlook

Suprabhatham Sub Judice

M.S. Subbulakshmi decided the fate of her memorials a long time ago

time-read
8 分  |
December 21, 2024
Fortress of Desire
Outlook

Fortress of Desire

A performance titled 'A Streetcart Named Desire', featuring Indian and international artists and performers, explored different desires through an unusual act on a full moon night at the Gwalior Fort

time-read
7 分  |
December 21, 2024
Of Hope and Hopelessness
Outlook

Of Hope and Hopelessness

The body appears as light in Payal Kapadia's film

time-read
3 分  |
December 21, 2024
Ruptured Lives
Outlook

Ruptured Lives

A visit to Bangladesh in 2010 shaped the author's novel, a sensitively sketched tale of migrants' struggles

time-read
5 分  |
December 21, 2024
The Big Book
Outlook

The Big Book

The Big Book of Odia Literature is a groundbreaking work that provides readers with a comprehensive introduction to the rich and varied literary traditions of Odisha

time-read
4 分  |
December 21, 2024
How to Refuse the Generous Thief
Outlook

How to Refuse the Generous Thief

The poet uses all the available arsenal in English to write the most anti-colonial poetry

time-read
4 分  |
December 21, 2024
The Freedom Compartment
Outlook

The Freedom Compartment

#traindiaries is a photo journal shot in the ladies coaches of Mumbai locals. It explores how women engage and familiarise themselves with spaces by building relationships with complete strangers

time-read
1 min  |
December 21, 2024
Love, Up in the Clouds
Outlook

Love, Up in the Clouds

Manikbabur Megh is an unusual love story about a man falling for a cloud. Amborish Roychoudhury discusses the process of Manikbabu's creation with actor Chandan Sen and director Abhinandan Banerjee

time-read
5 分  |
December 21, 2024

圓サむトではサヌビスの提䟛および改善のためにクッキヌを䜿甚しおいたす。圓サむトを䜿甚するこずにより、クッキヌに同意したこずになりたす。 Learn more