In many situations, we human beings make estimates by beginning at a start value. Psychologists call this phenomenon anchoring, or the reference-point-effect. I personally prefer the “new normal” syndrome, especially when we are talking about financial markets. The history of financial markets is filled with examples. For instance, the often-praised economist Irving Fisher declared on the onset of the Great Depression that stock prices “reached what looks like a permanently high

We are in the midst of the holiday season. New Year’s Eve is days away. In other words, it is a great moment to relive an eventful year, get the facts straight, and digest the impact of this year's important events yet again. Our top ten best read articles of 2016 might help you with that. I present to you our top ten of 2016 with a brief introduction.

During a stock market boom some entrepreneurs seem to be pure geniuses. Look at Elon Musk, founder of Tesla, for instance, Jeff Bezos, founder of Amazon, or Reed Hastings, founder of Netflix. In times like these they receive abundant praise. Stock prices rise, accounting “tricks” remain unnoticed, sell-side analysts raise target price after target price, investors cannot believe their luck, and the faces of these fine gentlemen appear on the cover of every important business magazine. Since 2015, a share in Amazon Inc. rose over 150%. Netflix rose in that same period over 140%. I argue that these heroes of today will be the big losers of tomorrow. As soon as the economic tide turns, investors will discover that these companies have been “swimming naked,” as legendary investor