Saturday, January 23, 2016

THE WAY MOST PEOPLE LOOK AT THINGS......A SAD FACT!

THE WAY MOST PEOPLE LOOK AT THINGS......A SAD FACT!


If everyone believes the economy is healthy and prices will rise, they probably will rise… at least for a while. But in the long run, reality sets in. No matter how many people expect – and want – prices to continue to go up, at some point, they will go down.

No amount of wishful thinking can erase debt, create profits, or stop markets from going up and down. There is always some truth that overrides delusions, myths, and group-think.

Investing in a myth can bring some perverse results.

Investors piled into stocks after 2009 because they believed a potent myth: The Fed had "saved the day." Bernanke was a hero. We were on the road to recovery.

The more widespread the belief became (and let's not forget that it was supported by the Fed's EZ money), the more stocks rose… and in many small minds this confirmed the truth they wanted to believe, thus reinforcing said belief.

But the higher the stock market went… the more debt increased… the more the whole shebang wobbled and lurched.

Now, investors may get what they least want: a deep and extended bear market, despite what they think or believe.

Reality doesn't care what you think. Thoughts hardly matter. Reality happens whether you want it  to or not.

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