20 March 2025
Markets aren’t just driven by fundamentals—they're shaped by psychology, sentiment, and collective biases. From the GameStop mania to the ESG investing boom, AI-driven stock rallies to the surge in SIP cancellations, investor behaviour often defies traditional financial theory and homo-economicus view of humans. Are markets truly efficient, or just 'inefficiently efficient'? This article explores how cognitive biases like framing effects, herd mentality, and myopic loss aversion influence capital flows and market cycles.
17 Aug 2024
The $27 billion merger of WarnerMedia and Discovery in 2021 has been one of the biggest M&As in recent history. The deal aimed to create a global entertainment behemoth that could challenge industry giants like Netflix and Disney. There were clear financial and operational synergies, but experts pointed out that, above all, cultural synergy is what is required to make this merger fruitful. The core focus area of WarnerMedia is traditional TV content, but Discovery was producing reality TV content. Due to this difference in focus, the company cultures were also different. The challenge lied in blending these two different corporate cultures to create a cohesive, innovative, and forward-thinking media company.
Date-11 Aug 2024
In the complex interconnected world of global finance, market disruptions are often triggered by clear and identifiable events—economic recessions, geopolitical conflicts, or unexpected pandemics. However, at times, the catalysts are more obscure, rooted in complex financial maneuvers that, while profitable under certain conditions, can spiral into chaos when those conditions shift. The recent volatility in global markets is a prime example, where the unravelling of the Japanese carry trade has intensified an already turbulent economic landscape.
Date-08 Aug 2024
Many of you might have seen the now-viral AI-generated image depicting Mother Teresa "fighting poverty." This image, though intended to capture a profound and empathetic scene, starkly illustrates AI's limitations in understanding complex human contexts. The glaring disconnect between the intended message and the AI's output raises important questions about the technology’s ability to grasp nuanced human experiences.
This observation led me to explore why AI, despite its impressive capabilities in generating human-like text and engaging in conversations, struggles with such seemingly straightforward tasks. My research included reading several articles about this limitation. Two in-depth analyses—one by Dr Melanie Mitchell and another by Ben Dickson at Techtalk helped me understand the root cause of this fundamental issue: AI operates primarily through statistical methods and similarity scores rather than human-like comprehension.