On
He was a champion of financial inclusion, and that was why he gamely joined my video series project on The Retelling of The Richest Man in Babylon. (
Nesting to know more about him.) My participation last year was to speak about Behavioral Economics at the plenary, then later on moderated the panel discussion on financial innovations.
(Click BSP FinEd Expo 2018) This year, newly appointed Governor
Congratulations to DepEd, represented by Undersecretary
The audience consisted of beginners and long-time players in stock market investing. The session was hosted by
Event host, PSE Assistant Department Head, Marketing Services PSE COO
) She talked about Investor Protection, a very timely topic given news about fraud that recently happened at R and L Investments, the 50-year old stock brokerage that suffered from
The session resumed with the short presentations of two brokers.
Mr.
He was followed by
I briefly talked about one fundamental reason why. It is called Loss Aversion.
What is Loss Aversion? This is the Bahavioral Economics principle that explains the way we treat wins or gains and losses. Let's say we gain
Rationally, if we lose that same amount, we should get negative 1,000 happy points or 1,000 pain points. Unfortunately, we are not wired like a computer.
We are wired to feel the impact of a loss twice as much as the impact of a gain. So, losing that same
The Tagalog saying, "Pera na naging bato pa!" really feels awful. Since this is the way humans are wired, we would rather avoid losses than try to acquire gains.
In the stock market, we feel this loss every single day, in fact every single minute if we watch it all the time! So that is the psychological bias that works against us, making us shy away from this important investment vehicle that we should all take part in. But you know what the real loss is? It is when you reach the age of 60 and you look back and see the difference of earnings that you could have made if you just calmly, routinely, regularly, and automatically invested in the stock market.
Let me say it again. Everyone must have equity investments in their retirement portfolio.
And the most efficient way is to just invest in equity index funds, no need to try to beat the market. It's a zero-sum game.
You are better off just automating it, then do what you do best, which hopefully is your own profession. v Cheers to relaxed equity investing! ANNOUNCEMENTS 1.
To e about Loss Aversion, you may click these links: a a www.philstar.
com/lifestyle/health-and-family/2017/04/26/1799329/lifestyle 2. Watch out for the highlights of the BSP Financial Education Stakeholders Expo on Friday.
3. Come join our FinLit Summit on April 4-5, 2020! 4.
Mom and Son Podcast - Season 4 Episode 9 (THE IMPORTANCE OF "ME TIME") Last week of November! Good day everyone, we have a short but sweet solo episode today for the Mom and Son Podcast. I discuss the importance and value of having "ME TIME.
" What does it mean and why is this being discussed? As the Christmas season has already arrived (at least here in
I invite everyone to join this episode and try to further appreciate the activity of being with yourself and enjoy this "Mandatory ME Time," that is introduced and explained in this episode. #MomAndSonPodcast Spotify a Buzzsprout a Apple iTunes a
Thanks to those who already bought the FQ Book, especially to those who took the time out to send me their feedback. Your feedback is food for my soul.
To those who have not gotten their copy yet, here's a short preview of FQ: The nth Intelligence You may now purchase the book in major bookstores, or if you want autographed copies, please go to FQ Mom FB page (click SHOP), or FQMom.com (click BOOKS), or email us at FQMomm@gmail.
com 6. Want to know where your FQ stands? Take the FQ Test Challenge now! Click link.
a
She is a Behavioral Economist, Certified Gallup Strengths Coach and the grand prize winner of the firstSinag Financial Literacy Digital Journalism Awards. Follow her on Facebook and YouTube as FQ Mom, and Twitter and Instagram as theFQMom.
Her latest book is FQ: The nth Intelligence. ATTRIBUTIONS:
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