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Morgan Housel (@morganhousel) does some of the best work regarding the “Psychology of Money,” which happens to be his new book's title. This article is a great reminder of what causes bad decisions at any time, but especially now, given the current environment.
Click on the link below for the full article:
Oct 1, 2020 by Morgan Housel
Jason Zweig from the WSJ, republished this article he wrote in 1999. It serves as a great reminder right now.
“When 90% of professional investors, with their M.B.A.s and powerful computers and multimillion-dollar research budgets, can’t beat the market, why should you believe anyone who says you can do it by day trading? (After all, the new information that comes to you over the Internet comes to the pros too.)”
There will always be the pull of tempting strategies that are “hot” at the moment, but history has proven that the hotter things get the worse people usually get burned.
The link to the full post is below:
If there is one thing that I think we can all agree on during this Coronavirus time is that our patience is running thin. Today in Chicago, there was snow on the ground when I woke up, and that did not help.
The funny thing about patience is that we tend to have the least amount of it when we need it the most. This is especially true right now. We tend to rely on certainty to increase our patience. When we know something is going to end or has a specific time, we can adjust our expectations and hopefully increase our levels of patience.
Right now, all we have is uncertainty. There is the uncertainty of when “Shelter in-home” will end, of when we can get back to work or the office when the kids get back to their routines, when sports will come back or when we can go to a restaurant?
We also have a tremendous amount of uncertainty towards the economy and the stock market, and this depletes our patience even more.
What science tells us, however, is that if we can build up our patience levels, we will be much more successful when dealing with these challenges.
So how do we increase our patience levels? We can do the familiar, exercise, eat right, get plenty of sleep, and get outside. Two additional things that experts encourage are:
1. Meditation
I have been using both the Headspace and Ten Percent Happier apps, and they are great. They both provide tools to help take some time for ourselves, but also to help us recognize when we are becoming more impatient.
2. Gratitude
Finding ways to be thankful even for the little things in life is proven to calm our anxiety and help manage stress. You can keep a journal on your own or get “The Five Minute Journal,” which is easy to use or use an app to help maintain this practice.
Taking some time to explore one or both areas will help to create the patience to get through these difficult times. If you have any questions or would like to discuss my personal experience with these, please let me know.
