Today in class we took a quiz on what we learned last class. We had to answer questions about the two reasons why people don't get very much money when they invest. The first reason is human behaviour; they let their emotions dictate their decisions, and the second is fees. We also had to remember the percentages of what the market made and what the average investor made in the US stock market and the bond market. The US stock market made 9.14% while individual investors in the stock market made 3.83%. The bond market made 6.89% while individual investors in the bond market made 1.81%. With the data it seems that investors aren't reaching the full potential of what they can earn. Thankfully, I got all the answers right. Also, we discussed Mr. Hallam's article about how people working here need to start saving because they don't have social security and apparently it caused a lot of anger.
For our project, we're doing the US Housing Bubble option. We were having a bit of trouble finding the emotional ways it affected people; it seems like all that is on the internet is how it affected the real estate market or the economy. We knew that obviously people got upset, but we wanted to get actual stories from individuals. I found this website which is called How Did the Housing Bubble Hit all of America? and although it doesn't show the emotional effects, it shows more unemployment which probably affected families and made things harder for them. So, we can probably use information like that to infer people's feelings.
I read Patti's blog post from October 30th and I found the quote from Warren Buffet she posted to be very interesting. It was "Success in investing doesn't correlate with I.Q. once you're above the level of 25. Once you have ordinary intelligence, what you need is the temperament to control the urges that get other people into trouble in investing." It means that anyone can invest, but you just can't let your emotions make decisions for you.
No comments:
Post a Comment