![A Covid-Era How-To For The Money-Wise](https://magarticles.magzter.com/articles/241/505076/5f3f91b695df9/Covid-19.jpg)
BOOMS and bull runs lead to “irrational exuberance”, a term coined by Alan Greenspan, former chairman of the US Federal Reserve, in 1996. More than a century before him, author Charles Mackay explained the phenomenon succinctly in his aptly titled book, Extraordinary Popular Delusions and the Madness of Crowds. He presciently wrote, “Every age has its peculiar folly...into which it plunges, spurred on by the love of gain, the necessity of excitement, or the mere force of imitation.”
Panics and investment pandemics, in contrast, lead to another kind of herd mentality, the lunacy that too is irrational and dynamic. However, what drives it is the pain of loss, the inevitability of volatility, and a desperate need to protect savings. Only in retrospect do investors realize the bitter truth in both cases. Economist Robert J. Shiller explained this about two decades ago when he wrote that the markets do not always reflect the “sum of the available economic information”.
What he implied was that the present prices of assets might give a distorted picture of the near future. During boom times, the high prices could suddenly fall. During crises, they could unexpectedly rebound. Since both the scenarios are unforeseen, the investors end up either taking the wrong decisions or making costly blunders. This was evident when Outlook spoke to dozens of investors on how they acted and reacted during the COVID-19 crisis, i.e. in the past six months.
This story is from the August 31, 2020 edition of Outlook.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 31, 2020 edition of Outlook.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
![Rage Against the Machinery](https://reseuro.magzter.com/100x125/articles/241/1812404/0uCjwI_9_1724751643932/RAGE-AGAINST-THE-MACHINERY.jpg)
Rage Against the Machinery
The brutal rape-murder of a junior doctor at Kolkata’s R G Kar Medical College and Hospital has an inescapable geography
![The Endless Night](https://reseuro.magzter.com/100x125/articles/241/1812404/nDWunn7AG1724751567613/THE-ENDLESS-NIGHT.jpg)
The Endless Night
WEST Bengal witnessed mass protests on an unprecedented scale on the eve of India's 78th Independence Day-the midnight of August 14when tens of thousands of people, overwhelmingly women, took over the main squares across the state's cities and towns.
![Cause and Effect](https://reseuro.magzter.com/100x125/articles/241/1812404/hYXnTNy1A1724751408726/CAUSE-AND-EFFECT.jpg)
Cause and Effect
India needs to show atmanirbharta as the era of New Cold War’ is rampaging across South Asia
![Newsroom in Exile](https://reseuro.magzter.com/100x125/articles/241/1812404/PkaHjJTG91724751217832/NEWSROOM-IN-EXILE.jpg)
Newsroom in Exile
It was a dangerous time to be a journalist in Bangladesh. Between 2001 and 2006, 13 journalists were killed and hundreds faced threats, intimidation, harassment and torture from law enforcement agencies.
![Notes from a Revolution](https://reseuro.magzter.com/100x125/articles/241/1812404/zREHlPu2I1724751073691/NOTES-FROM-A-REVOLUTION.jpg)
Notes from a Revolution
Salimullah Khan is a Dhaka-based political analyst and public intellectual who teaches at University of Liberal Arts Bangladesh. Snigdhendu Bhattacharya speaks to him about the implications of the Bangladesh uprising
![We, the Women](https://reseuro.magzter.com/100x125/articles/241/1812404/V_NKHFpTf1724750976995/WE-THE-WOMEN.jpg)
We, the Women
The number of casualties in Bangladesh would have been much higher had women not taken to the streets in such large numbers. A first-person account
![Jamaat Raises its Pitch](https://reseuro.magzter.com/100x125/articles/241/1812404/qQE4ggvxq1724747089476/JAMAAT-RAISES-ITS-PITCH.jpg)
Jamaat Raises its Pitch
After being underground for more than a decade, Jamaat-e-lslami is back on the political circuit, raising concerns for India
![Liberation 2.0?](https://reseuro.magzter.com/100x125/articles/241/1812404/vJwcI0gUw1724747000485/LIBERATION-20.jpg)
Liberation 2.0?
India must be actively involved to prevent Bangladesh's return to the East Pakistan days
![The Hindu Question](https://reseuro.magzter.com/100x125/articles/241/1812404/wiSXlqRu61724746843046/THE-HINDU-QUESTION.jpg)
The Hindu Question
Rana Dasgupta is the General Secretary of the Bangladesh Hindu Buddhist Christian Unity Council, one of the main minority rights organisations in the country. He spoke to Snigdhendu Bhattacharya about the attacks on minorities, the role of the student leadership, the interim government and future plans
![When Statues Fall](https://reseuro.magzter.com/100x125/articles/241/1812404/GAHcyzbWp1724746370212/WHEN-STATUES-FALL.jpg)
When Statues Fall
The protests in Bangladesh were about more than just toppling a regime. It was about reclaiming dignity and humanity in the face of oppression