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Importance of Behavioral Finance

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Blog 3 Shuchi. P. Nahar Need of behavioral finance in today's market scenario..  As discussed in the previous blog , this blog is in continuation and this will help an individual, industry veteran and beginners to understand the roots of finance , depth of instincts and biases.  https://myweekendspot.blogspot.com/2019/11/is-long-term-investing-possible-in.html?m=1 Link to previous blog for detail understanding.  Behavioral finance came about as a way to explain in a rational way the irrational behavior of markets and investors or, as one acclaimed economist put it, finance from a broader social science perspective including psychology and sociology. Behavioral Finance seeks to account for this behavior, and covers the rationality or otherwise of people making financial investment decisions.  Understanding Behavioral Finance helps us to avoid emotion-driven speculation leading to losses, and thus devise an appropriate  wealth management ...

Is Long-term investing possible in volatile markets?

Weekend Blog 2                                                  Shuchi.P.Nahar "Role of behavioral finance for long-term investing". The basic and most frequently asked question in today's scenario.  Is long-term investing favorable in such volatile market? I s this the right time to take entry or wait ? Will markets fall from here or rise?  Is short-term investing a favorable strategy to make more returns in volatile market?  To all such basic questions to be answered, let's revise what markets probably have made us forgotten in past few months.  "Concept of long-term investing " If short-term investing is about capital preservation, long-term investing is about wealth creation.  Long - term investing is about building the kind of investment portfolio that will provide you with income for later in life, and for the...