This interview was appeared in Gulf News(most popular newspaper of UAE) on 18th March 2013.
This is about Predictions and performance of the market. I’m posting excerpts of the interview.
Have you ever thought that what could be the interrelation between Predictions, Market movement and Investor’s psyche? Read on this interview of renown psychiatrist from India, he shows a curious connection between them.
1. In your opinion, what kind of mindset could possibly drive people (Indian or Chinese) to follow astrological predictions while making crucial monetary decisions (even if it means losing money)?
Majority of people associate money to fortune, very few really believe that it’s a product of hard work. As a result, most of the people depend on the luck for their scope of becoming wealthy and there by on astrological predictions! Such predictions raise hope, give them confidence and they tend to follow them despite of risks involved.
2. Or would you say that there is not much difference between astrological predictions and an analyst’s predictions when it comes to the stock market?
Market is controlled more by sentiments of investors than fundamentals. Any market analyst has to keep this bitter fact in the mind and the fact has its own place in his analysis. Moreover, in this world of commercial gimmicks its hard to believe that analyst’s predictions are genuine and not manipulative. As a result, there is not much to choose between astrological predictions and analyst’s predictions, sad but true.
3. In your opinion, is it possible that investors believing in astrology can actually make a difference to stock movement? (I know this is not exactly in the realm of psychology.)
If astrological predictions are made for an investor then it can affect his portfolio only. For example, if an investor is told that according to astrology; he can be benefited by investment in oil sector then his portfolio may be dominated by investment in that sector. But it will not affect stock movement of oil sector unless huge amount of transaction takes place.
However, if prediction is made for particular company or a sector( possibilities of such predictions are less) then stock movement may get influenced. Mostly stock movements are influenced more by analyst’s predictions than astrological predictions.
4. Is there any danger to a person’s wellbeing if they conduct their professional lives and take financial decisions based on seemingly irrational practices like astrology?
Yes, it’s like gambling with blind cards that may give you a thrill with associated dangers! You are at the mercy of possibilities which can swing on either side. Investor’s mood is also likely to swing with his loss or profit. Such type of uncertainties always keep you anxious, worried and excited. This can be really dangerous for mental and physical well being of a person. He may end up developing Anxiety Disorder, Depression, Stress, Insomnia, Hyper acidity, High blood pressure and many psychosomatic disorders.