The fifth paragraph explains human nature that people don’t want to admit their failure. That will cause future problems and cost companies a lot of money.
Then, the writer shows another problem. People tend to buy stocks related to their experiences and many investors tend to buy stocks in their home countries. However, it’s not ideal behavior and the writer recommends portfolios need to be diversified.
In the seventh paragraph, the third human characteristic is that people are afraid of their failure rather than success in the market. This causes people to be irrational.
Decision making for investments needs to have a lot of data. However, people spend a lot of time on small decisions and not so much time on big decisions. The balance is important.
Thus, People have a lot of failure in decision making for investments. However, these experiences lead to not only failure but also their future situations. Then, some investors trade frequently in the market.
As for companies, they need to focus on increasing their money, although governments don’t do that because of political pressures and so on. Therefore, irrational decisions are sometimes in the market by governments. 194 words
The fifth paragraph explains the tendency
of human nature that people don’t want to admit their failure. That will cause
future problems and cost companies a lot of money.
Then, the writer shows another problem.
People tend to buy stocks related to their experiences and many investors tend
to buy stocks in their home countries. However, it’s not ideal behavior and the
writer recommends portfolios need to be diversified.
In the seventh paragraph, another human
characteristic is that people are afraid of failure rather than success in the
market. This causes people to be irrational.
Decision making for investments needs to
have a lot of data. However, people spend a lot of time on small decisions and
not so much time on big decisions. The balance is important.
Thus, people have a lot of failure in
decision making for investments. However, these experiences lead to not only
failure but also their future situations. Also, some investors trade frequently
in the market.
As for companies, they need to focus on
increasing their profits, although governments don’t do that because of
political pressures and so on. Therefore, irrational decisions are sometimes made
by governments.
