Emotional contagion is the spread of moods from one person to another, possibly related to ancient animal defense tactics or empathy. Negative emotions have a stronger effect than positive ones and can affect business productivity and family life. Some people use emotional contagion to intentionally influence others. Emotional contagion is a scientific term that describes […]
“Resemblance and contagion” refers to the universal tendency in human reasoning to view similar objects as connected and objects that come in contact once as always in contact. This thinking is the basis of taboos, superstitions, and folk magic. It is an ingrained aspect of human cognitive processing that helped our ancestors survive but can […]
Financial contagion is the spread of negative effects from one financial institution or market to others. It can be caused by events such as currency devaluations, economic recessions, and bank failures. The interdependence of world markets means that no financial crisis can be confined to its own country or industry. Governments have established controls to […]
Contango is a market phenomenon where futures prices decline to spot prices before the actual delivery date. It is caused by holding costs and maintenance costs, and can be projected by taking several factors into account. Pullback is the opposite reaction, where futures end up trading at a higher rate per share as the delivery […]
