Posts filed under “Psychology”
Whenever I post about any terror related issues and their impact upon the Markets, I brace myself for the email barrage: Someone inevitably accuses me of callously ignoring the horrors of these assaults and the tragic loss of life to make a quick buck.
Only it didn’t happen this time. I find that intriguing.
Its especially so, when you consider the strategic objectives of those who use terror: By focusing on "soft targets," i.e., civilians, they are seeking a disruption of the global economy for their own ends. Cower in your homes, don’t go out, travel, shop — thats part of their grand plan.
Even the timing of these "barbaric attacks" are coldly calculated: By hitting during rush hour (as opposed to at night), they not only maximize casualties, but they insure "good," well-lit video for TV. They maximize their media coverage, catch the news cycle with plenty of time to make front page coverage the next day.
Allowing this to occur is unacceptable to me. Since one of their goals is a disruption of the global economy, any hesistation I used to feel about getting back to business is now gone.
We all must accept a few ugly facts of life:
1) We will all die one day
It may be in bed as an old man, or it may be on a crosstown bus sooner;
2) How we live our lives is our own decision
I for one do not want to base my life decisions in response to pathologically deluded fearmongers;
3) Returning to living your own life sooner is preferable to living in fear
Once we decide to not allow others to make decisions for us, it becomes easier to deal with the horrors that lunatics impose on the rest of the world
That’s it for my dime store philosophy.
The bottom line is this: When the next terror attack occurs — and there will be another and another and another — my response will be to appreciate the bravery of those souls who went about their lives unintimidated, briefly mourn the loss of life — and then start looking at my macro economics and charts and indicators.
My goal is to get back to normal, to choose my own path, and to not allow these cretins to dictate how I live my life.
>Soapbox mode off.
From R. Douglas Van Eaton, CFA, professor of finance in the
College of Business Administration at the University of North Texas, discusses common investor errors:
Fear of regret/pain of regret
Myopic risk aversion
Van Eaton notes" A better understanding of the psychology of investor mistakes can
reduce their effects on investment decisions. Here is a list of the
most common psychological effects, and how you can reduce their impact
and incorporate them into your own investment decisions."
The full piece is below.
The Psychology Behind Common Investor Mistakes
R. Douglas Van Eaton