Herd Mentality Definition: This term describes investors’ propensity to mimic the behavior of a bigger group, frequently motivated by a desire to fit in or a fear of missing out (FOMO). Impact: Herd mentality can cause market bubbles or crashes in the Philippines. For instance, many Filipino investors rush to buy stocks during strong market…
Anecdote Thinking Fast and Slow emphasizes psychological insights and decision-making processes to the exclusion of anecdotes. Nevertheless, an illustrative instance from the book pertains to an experiment that Kahneman and his colleague Amos Tversky called the Linda Problem. The participants were given two descriptions of a woman named Linda as part of the experiment. Linda…
There are times in our life when we have to give up something to make others happy. The process is not easy and it hurts us too. But when we try to see the broader picture of things that will affect not only our life but the life of those we love, like our…