A few weeks ago I wrote about how the COVID-19 impact on the markets is temporary.
Hope things are well. At this time all you are supposed to do is eat, crap and sleep, thats it, nothing more nothing less. Daddy and Mommy are really happy that you are here. These are your formative growing years so how about we start with some lessons on behavior.
Most humans have what we call cognitive biases, these were great things when we were evolving from animals, but cripple us today. A lot of research is now being done on this topic and marketers have made a fortune using these biases to make money of you. So its a good idea to understand what these are and how to counter. We will talk about two big ones today, Confirmation Bias and Loss aversion.