Learning from the Past Bubbles and Bursts: Understanding Human Behaviors, Investment Risks and Opportunities for Sustainable Return

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Butaga Punturaumporn

Abstract

Knowledge and knowing our investment goal are keys to satisfactory outcomes when applied effectively.  Though we tend to put blame on fate and misfortune, it is natural human behavior that tends to make bias and emotional decisions.  As in the global financial crisis, it was the result of series of irrational behaviors and bias decisions made by market participants.  This paper looks back in a few of financial histories, human behaviors and how process could be used to seize an investment opportunity, understand today trends, and stay on course of meeting investment plans.   With financial markets around the world going through rapid and unprecedented changes, learning from past crisis would help us understand financial market today with more conscious mind and achieve sustainable investment returns.

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