Fear of the Inevitable End Any investor knows the markets’ great returns over the last couple years. Most non-investors out of jealousy will undoubtedly be talking about the next stock apocalypse where everyone will need to batten down the hatches and hopefully start to hide that money in their mattress. Yes, market declines are a common thing.
We live in a society that values intelligence. For the most part, this is a great thing. However, we have placed an extreme amount of emphasis on being well-rounded. This is a good thing, right? Being able to do a little bit of everything? Maybe so, but economics shows that it may also lead people down the road to poverty. Imagine if people thought they are educated in everything.
How many times have you failed to do something out of fear? Or, talked yourself out of doing something because of it? What do we do when we're afraid? Well, it seems to me that is when one’s survival skill to follow the pack kicks in. When it comes to money, is anyone you’re following doing as well as they should? Given the statistics, I would say that is it an overwhelming NO.