Finance, Investing, and Emotional Economics
“We must learn to live together as brothers or perish together as fools” – Martin Luther King. Jr
An important aspect of trading emotionally is valuing integrity and morality. An emotional trader must, above all else, think of the repercussions their investments may have on the world at large. Could you really sleep at night knowing that you are personally funding terrorists or child exploitation? Continue reading “Bag Holding, Real Investors Cry”
“Analysis is like a lobotomy” – David Byrne
In the run up to the housing crisis in 2008, real estate was an incredibly profitable investment. A sector many of us were envious of, several partners left their cushy corporate jobs in order to manage their real estate assets full time. John, a senior partner at the time, ended up selling his business, a conglomerate of apartment complexes, and returning to the firm shortly before the financial downturn. At the time, we were all confused. Rumors abounded of, perhaps John’s wife had been sleeping with Ben from accounting again. Had John lost his mind? Perhaps John was dying. Having sat down with John to discuss his return, and as the office would later learn, John explained how he returned in order to be closer to his girlfriend who, unbeknownst to his wife, had recently given birth to a baby boy. John was the father. Continue reading “Technical Analysis, The Parable of John”
I had an advanced finance professor quite a few years ago who always began the first lecture of every semester the same peculiar way. Rather large and disproportionate, he would lumber into the classroom a few minutes late carrying a large, pink duffel bag. The tacky hot-pink accessory served two purposes; first, the unusual sight would silence the room, hushed whispers of intrigued students would boil with anticipation; and second, the large bag held all of the ingredients required for his first lesson. Many a student who witnessed what came next would have their lives changed. Continue reading “The Fish Tank”
