Tag Archives: financial

Your Financial Enemy Number One: Emotions (part I)

financial enemy

In Romania, between 2002 and 2007, the median price for an communist-era apartment rose by a factor of 10 (that’s plus 1000% !!) from 10’000 EUR to 100’000 EUR. For some modern apartments in central Bucharest, prices rose above levels of cities like Berlin or Paris. In 2007, I just arrived as a foreigner in this country. Thanks to the …

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Your Financial Enemy Number One: Emotions (part II)

wrong decisions

From a purely logical standpoint, it does not make a lot sense to buy a lottery ticket. In a 6/49 game, the probability of hitting the jackpot is 1:14’000’000 or about 0,00051 %. Still, millions play each week. ‘Irrational’ decisions led to the emerge of a field in economics called  ‘behavioral finance’ that explains why we humans tend to make wrong decisions on …

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