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Fundamental Truths

February 13, 2019

We spend much of our time thinking about, predicting and anticipating CHANGE. 

Several years ago, the founder and CEO of Amazon, Jeff Bezos, turned the question of change on its head. He said it is more important to consider what will not change. In other words, what are some fundamental truths we can rely upon?

#1  Human Nature:  Sure, the players and environment may change, but our physiology (hard-wiring) hasn’t changed much over the millennia.  As humans, we tend to use our time and energy speculating on market outcomes and public policy. In other words, we spend our time and energy on things that are unpredictable and always changing 

That is why I say that humans are hardwired to be bad investors. We are emotional, we tend to respond hastily when threatened, we often overreact, we prefer shiny or sexy things to the mundane, we are distracted easily and we hate uncertainty.

We should instead spend our time focusing on what we can do today to respond better to whatever occurs tomorrow. For that reason, I am focusing on how to help you ignore the noise, maintain the proper perspective and improve financial decision makes – despite our natural inclination to allow today’s news and yesterday’s market moves to influence us. 

(c) 2018 The Behavioral Finance Network. Used with permission..