Hi class,
As I am sure you will agree, there were many fabulous responses to the last post. Good start!
Our article this week comes from Forbes magazine, "a leading source for reliable business news and financial information" (www.forbesmagazine.com). This article describes how logic can interfere with investment decisions. If given $1,000,000 to invest, using the advice from this article, what would you invest in and why?
Seven Logical Thoughts That Can Ruin Your Financial Life
http://blogs.forbes.com/investor/2011/07/19/logical-financial-apple-netflix-linkedin/
Meshkati, A. (2011, July 19). Seven logical thoughts that can ruin your financial life. Forbes. Retrieved on July 19 from http://blogs.forbes.com/investor/2011/07/19/logical-financial-apple-netflix-linkedin/.
If I have $1,000,000 to invest, I would put the Money in real estate and some Chinese state-owned corporations. As the article says, the housing market will be back at last. Because people need shelters, the rigid demand of houses makes me think I will not lose money by invest in real estate, especially in China. The reason why I invest money in Chinese state-owned corporations is they never lose money. Although the top people of these companies are corrupt, the government will pay for everything. Further more, these companies have many privileges. they enjoy market dominance, it is hard for them to not earn money.
ReplyDelete-----Crick
While the investor consider the existing financial market as a place where you can get more money then that you invest,the fact is,based on what the author conclude,the reason why financial market exist is to deceive the investor，to dig their money out of pocket as much as possible.The so called logical mind is based on the logic of the market.So,if you think you can earn money as long as you follow the marketing rules.Well,congratulations,you are cheated.following the above idea,the author provides lots of examples to prove his opinion.I think it's true.why do the financial market want the investor to profit?If i earn money,they will lose money.that does make sense.So if i have 1000,i might invest money to the equity markets.
ReplyDeleteliangweidong
In most people's opinions,their lives are dominated by the logical mind,but sometimes the logical mind can bring people a detriment on the financial front.Such as financial Armageddon in 2008 ,the financial seemed to be controlled by the logical mind,in fact,when the financial Armageddon broke out,people can't stop it.And many other things,even some professionals use their logical mind to think about something,the results sometimes are wrong.In our daily life,we are not professionals,on occasion,we can jump out of the normal frame of thinking and use our creativity to think.Perhaps in this way,we can create our own succeed,instead of following the ideas of others.
ReplyDeleteVincent Yao,
ReplyDeleteThe article "Seven Logical Thoughts that can Ruin Your Financial Life" written by Ali Meshkati in Forbes magazine talked about the issue that logical thinking may ruin our finance, while the illogical thoughts are beneficial. Since I am a student learning economy, I am very intersted in this article. It is funny to metaphor the market to a thief. Market will manipulate our emotion of fear and greed,which may cause loss of financial market. But, the logical thinking always leads us to trouble ,while every one do not know anything. Like the financial crisis in 2008, our logical think make us believe we can control the financial system,but we actually can't. Also, logical thinking may destroy our inividual finance. By reading the article, it is acknowledge that I have never known anyhing about our thinking and was amazed at this point. In the past , I always think that the logical think is extremely important,however,I am wrong. Therefore , our thinking must be creative, and cannot be limited in regularity, or we will ruin our finance by ourselves.
After I read this article,I know that the logical mind is important.but that is not enough,In order to survive in the financial markets over the long run,we also need our special ideas.As we all known,The market is a enormous space full of Opportunities and challenges,it routinely manipulates the emotions of fear and greed.You should know a famous sentence:"The time to be greedy is when others are afraid, and the time to be afraid is when others are greedy. -----Warren Buffett " Therefore,If I have one billion money I will invest Small company which have developing stocks and some field like New Energy,High tech or Giant in their domain.When their price Fell to low I will try to manipulate and control their price in stock exchange or forward trading
ReplyDeletePanyj--BENZ
Reaction of the artical:"Seven Logical Thoughts That Can Ruin Your Financial Life".
ReplyDeleteIn this artical,the author discussed the effects of logical thoughts on finance.Some good suggestion about the right and main logical ideas are presented too.If i were given $1,000,000,i may not to rely on the logical infer to decide what to do next,the logical mind can betray investors some time according to the author.I should overcome my grredy and fear when i make decisions,the better place for me to put my fund is in a third world country,which is safer and don't rely on the forein currency.Also,I might do some investment in real estates,it is mentioned in the artical that the real estates will be a long-term outperformer.
-----------------------Afra,Qian
this article catches my eyes.I come to york to study finance,and this article fits our major.but it is hard to understand.Although logical thoughts are good, in some certain area, it is not always right. in the past, many reaches and reports said that we must have logical thoughts, it will make success easier to achieve.what is logical thoughts? simply, it is a way of thinking how to run your company, how to orgnize and how ti seperate man force.and the writer also told us what is teh most important things in logical mind.
ReplyDeletein a word, our ideas cannot always stay at the same status, we need to discovery, to create.
this article catches my eyes.I come to york to study finance,and this article fits our major.but it is hard to understand.Although logical thoughts are good, in some certain area, it is not always right. in the past, many reaches and reports said that we must have logical thoughts, it will make success easier to achieve.what is logical thoughts? simply, it is a way of thinking how to run your company, how to orgnize and how ti seperate man force.and the writer also told us what is teh most important things in logical mind.in a word, our ideas cannot always stay at the same status, we need to discovery, to create.
ReplyDelete------Grace
In the author’s opinion, he believes that logical thinking can only ruin our economy system, while illogical thinking can help build a successful life. In my opinion, the reason why logical thinking has no help in economy zone is that our economy situation is changeable and unfixed, while logic is always about cause and effect, which is fixed. So we cannot only depend on the regular pattern of logic to solve economy problem, but also have to change our countermeasures to adjust to the real situation.
ReplyDelete---- Sabrina
In the author’s opinion, he believes that logical thinking can only ruin our economic system, while illogical thinking can help build a successful life. In my opinion, the reason why logical thinking has no help in economic zone is that our economy situation is changeable and unfixed, while logic is always about cause and effect, which is fixed. So we cannot only depend on the regular pattern of logic to solve economic problem, but also have to change our countermeasures to adjust to the real situation. And only by this can we find the most efficient solution to solve the problem.
ReplyDelete--- Sabrina
In the article"Seven Logical Thoughts That Can Ruin Your Financial Life" written by Ali Meshkati stated the results of logical thoughts on investment and economy, but especially the finance. And then the author said that safe is of importance. After reading the article, I know we should have the logical mind to deal with everything. We can't solve problems until they suffer us. We should learn a lesson from the financial crisis in 2008. There is a proverb saying that stock market has risk, and you shoule invest carefullly.
ReplyDeleteAfter reading the article named “Seven Logical Thoughts That Can Ruin Your Financial Life” written by Ali Meshkati, i have a strong feeling that the logical mind may not always be beneficial to the market, actually, it is a detriment in the financial markets. This so called logical thinking is often applied in the markets which can earn generous profits, like equity market and housing market. However, under this kind of thinking, investors have fixed mindset and a firm grasp, and then they cannot create more profits than they want. Conversely, illogical thinking maybe the better way for making profits not only in the financial markets but also in our daily life. Although we should follow our logical mind to guide our daily life, we should always have creative mind to make our life much more colorful. In terms of the question that “If given $1,000,000 to invest, what would you invest in and why?” I want to invest into Monster Drinks, and those kinds of fanciful products. Those are not just for profits but for fun and usually this kind of stuffs may attract people, and make more profits.
ReplyDelete------Molly
Routinely,we are always ponder the pros and cons between illogic thoughts and logic thoughts,and normally we always believe that logic thoughts are more autoritative than illogic thoughts ,but which does't work in some cases.The article "Seven Logical Thoughts That Can Ruin Your Financial Life" written by Ali Meshkati is talking about this issue.Overwhemingly,if we want to survive ourselves in stock market in a long way,the importance of viewing the market like a thief is necessary.Of course ,so emotions of fear and greed that shoud be also involved.For instance, the financial Armageddon in 2008,which was firmly believed by logic thinkers this is the "end of capatalism" and anything tied to capitalism was to be abandoned in the favor of cash,however,in fact,cash in a foreign currency of a third world country that wasn’t tied to capitalism at all.Sometimes logic mind could betray investors in financial field,just like the example of Nasdap,consequently,the illogical thinkers came out ahead rather than logic thinkers.If I had $1,000,000,I would like to invest the estate of Canada.For a start,the politic environment here is stable,for me as a investor, I could enjoy some policy favors from the government.Secondly,a house is one of the most basic needs for a person to own,with a growing number of immigrants coming to Canada,therefore,this is a very promising investment area.In addition,the housing price here is not that high as that of BEIJING or SHANGHAI,so i can take more advantages by limited funds.Lastly,comfortable and easy living environment here is also a great attraction for me.
ReplyDeleteThe main point of the article is, in financial market, be full of logically is unnecessary because sometimes logical isn't useful to adjust and follow the change of financial market. For example, " Just as the numbers during the bottom of 2008 failed to justify the historic rally that has taken place over the past three years. Just as logical thinkers failed to steer you clear of buying a home in 2005, and instead told you to buy a boat using equity from your home." from the author. The author supported that people needs to use their imagination when they are searching or making strategic decision. However, in my opinion, I disagree with the author. I think that everything has their logical, we need to follow the rules. For the financial market, it must have their own way to operate it. People cannot make a decision without observing the trend of the market. Therefore, I consider that logical is important to the financial market. However, if I have $1,000,000 to invest, using the advice from this article, I have a plan for these money. If I have $1,000,000, I will buy some US dollar. And then I need to store these up when the exchange rate of US dollar comes back, even more I will sell that. The reason why I do that is because US dollar, right now is really cheaper. Secondly, I want to build up a school in China where is totally different with Chinese style. The education system in China is really formal. Children only can learn some knowledge or some information by rote. However, it is really unuseful for students. Hence, if I build up a school, I will make more activity for students who can learn some problem-solving in these activity.
ReplyDelete——————Ada Liu
As the author says that our money is always not safe in the market, because you will never know what it is going to happen the next day. Maybe a person who is billionare will lose all his money in one day. In China, someone thinks that if he has a lot of money, it is safe for him to invest the money on the house or ground. But they haven't recognized that you only can own the house for 70 years, then the government will take your money and your house away. If I have 1,000,000 to invest, I will invest it to buy alot of fancy cars. Because that is my dream. Anyway I cannot ensure my money safe, then I am gonna spend it.
ReplyDeleteHenry Zhang Zhang Zhaohan
Molly’s comment on Ada’s opinion:
ReplyDeleteAda said that she didn’t agree with the author’s opinion, and we should do everything by the rules and principles. I really disagree with Ada, because if everything in the world is logical and all in that particular and fixed way, there will be no invention and creation in this world. Maybe in that case, the society will stop developing and also the financial market will be trapped into the dig. However, in terms of the usage of $1,000,000, Ada wants to buy the US dollar and store, in my opinion, this is the way to make more money, but people cannot make more profits just by putting the money in the bank and earn the interest or waiting for the appreciation of the US dollar. But I admire the second way she uses those of the money to build up schools in China. Investing into educational career always be the best way to show compassion an gain profits.
Ada preview Vicient Yao
ReplyDeleteBefore, Vicient Yao believed that logical thoughts is impportant to the fancial decision; however, now he thinks that illogical thoughts is important because people cannot control the fanical system and follow rules to fix it. Meanwhile, in fanical system, making a decision should be creative, which can help people or government to have a good profit. For me, I agree with a part of that. Indeed, people need to make a decision with creative. However, that needs to basic on the rule and trend. People should not decide something without logical
Vincent's comment on Molly's opinion:
ReplyDeleteTo my surprise, Molly's response is extremely logical. Obviously, we can find her have a profound and powful analytical thinking from her opinion to this article. It is clear to tell us that the benefit of illogical thinking and the distriment of logical. To explain this the disadvantage of logical thinking, Molly also used the example of equity and housing market from the article. Meanwhile, it is of importance to have a ceative thinking,which can enrich our life and provide us with funny. Moveover, Molly share her idea about her investment of 1 million, which give me source of creativity.
----Vincent
Linda's comment about what Molly said:
ReplyDeleteI agree with Molly.As she said"I have a strong feeling about the logical mind may not always be beneficial to the market, actually, it is a detriment in the financial markets."From her comment,I learnt that logical thinking doesn't work all the time.In our daily life, when we deal with something,we usually use our logical mind ,but to financial,we can not only use logical mind to solve economic problem,maybe the illogical mind is better.In fact,in some field ,we can not only use our illogical but also creativity to think.It can make our life more colourful and successful.
Bill's view about what weidong said.
ReplyDeleteOverwhelmly ,this is a very sharp ,vivid ,realistic and humorous comment of"Seven Logical Thoughts That Can Ruin Your Financial Life".For sure,it is deserved to be called "Natural ,Unaffected and Stylish brother" in our class."to dig their money out of pocket as much as possible"writted by weidong vividly shows the reason why fiancial market wants to make profit from the investors,actually ,it is a lie.Not because you have logic thinking and then you can earn money from your stock,in fact,the truth is" If i earn money,they will lose money.that does make sense."supported by weidong which quite sharply revealed the rules of fiancial market.So impressive this comment is !
Tina's comment about what Sabrina said:
ReplyDeleteI agree with Sabrina. As she said"we cannot only depend on the regular pattern of logic to solve economic problem, but also have to change our countermeasures to adjust to the real situation." Everyone should have the mind to solve economic problem. Sometimes, logical thinking cannot be used in any area.We should be calm and be creat to deal with everything. Investment can make more money, but what we can do is to prevent losing money. To make more profits, we should use the dialectical ways.
Henry Zhang comment about what Sabrina said:
ReplyDeleteI totally agree with what Sabrina said. Of course, logical thinking must be used when we are solving things. But market is changing everyday, we cannot be so dependent on logical thinking. Lots of people think that the knowledge they studied about economics in the university is always right. If they want to be successful, they just need to follow the knowledge they learnt. Actually it's not always right, the knowledge they teach us is just for basic rules. The art of controling the market is to change yourself while the market is changing.
Sabrina's comment about what Afra said:
ReplyDeleteWell, I quite agree with what Afra said, and I think I'll do the same as she does if I was given 1,000,000 dollars. In my opinion, we should all overcome our greedy and fear when making a financial decision, and we should be both sensible and dare to try and scratch the opportunity we meet. I think making a long-term investment is an appropriate way to make moeney and save money. In fact, the crucial step is that we should objectivly deal with financial matters.
add:
ReplyDeleteIf I have $1,000,000,I will invest in real estate and catering industry,because people can not live without these.
Crick's opinion about Afra's comments.
ReplyDeleteIt's a good decision to invest in real estate. However, I do not think the markets of developing countries are safer than that in western countries. Because the markets of developing countries are very young and unstable. The governments of developing countries still do not have a complete law for investment. It is true that developing countries have more chances to earn money, but they are not good place to do stable investment. Instead, developed countries' markets are more stable for green hand. You might earn less money, but it is hard for you to lose money by accidents.
Afra's point of view about what Vincent said:
ReplyDeleteHis comment is more specific than mine,and I truely agree with his idea about the market. He was comparing the market to the thief,then he listed an example about the effects to the logical thoughts. In my opinion,logical thingking was very significant in the financial market,but now,I know that an inflexible thingking can not give us benifits, most important thing in a financial investment is a creative thingking and changeble mind.Do not be greedy.
---Afra,Qian
Benz's comment about what Tina said:
ReplyDeleteHer article have good decision,she said she know we should have the logical mind to deal with everything,we should have our own judge,see the history of prehominid mistaken,to take more care to the investment.
Liangweidong's comment to Henry:
ReplyDeleteThat's right!The reason why we make money is to spend it.But a lot of people has become the slavery of money.They just keep thinking how to make money with money,like putting the money into stock market.Even they earn money from stock market,under the motivating of earning more money,they will still choose to invest instead of spending the money which i think is wrong.Henry'opioin is really worth considering.When you get the things you like with the money you earn,then can you feel the happiness earning money
Grace comment about what Vicent said:
ReplyDeleteI am totally agree with Vicent. Logical thinking brings some trouble. To explain his point, he gave us an example ---2008, financial crisis.Every one of us, did not consider it would be a big deal. However, it is true. We have not completely recovered from the financial crisis.After reading this article, I found that I am wrong before,if we put more emphasis on logical thinking, we will lose creative thinking, and the latter one is most important than the former one.