The Cost of Believing Headlines
Do you remember the Headlines in February –April 2020?
We might not remember the headlines. We might not even feel now what we felt back then. However, when we live through such periods, our amygdala takes over. This is the part of the brain that is primarily responsible for the “fight or flight” response. Its job is to protect us from risks and so it takes over the rational part of our brain and gets us to SELL or RUN.
What were we running from anyway?
1 year down the line, many are now scared that the markets have gone too high. First it was too low and now it is too high. The media continues to spew different headlines and people continue to fall for this.
Imagine the cost of being out of the market.
Is it 50% or 60% or 70%?
The care of a real financial professional should help eliminate this cost or at least cover a significant portion of this. In 1 such year, the counsel of a wise and real financial professional has proven to be super invaluable.
The truth is headlines (current or tomorrows) never drive our goals or plans; they can only cause us to react to markets interrupting our compounding engine in the process.
While thinking about compounding, Vladimir Lenin’s brilliant quote comes to my mind “There are decades when nothing happens and there are weeks when decades happen.”
By the way, what are the headlines that you are believing now?
I would love to know your thoughts.