|
|
|
|
|
|
|
5
The Fear and Greed Trilogy, Part III: Hugging the Emotional Flatline |
|
|
|
|
|
|
|
|
We have examined the nature of both fear and greed, calling them the yin and yang of investing. Presenting the context from which these investment pressures arise, we maintained that they have been operating since the earliest economies were set in motion by the first exchange of goods. |
|
|
|
|
|
|
|
|
In this final chapter of the trilogy, we now focus on how investors may balance these conflicting motivations. Keep in mind, however, that we are actually talking about a larger perspective than just how these forces play out in the investment arena. We are working with two emotionsfear and desirethat encompass so many other aspects of our lives as well. |
|
|
|
|
|
|
|
|
To varying degrees, we all face fear in life. And we must also come to grips with our desiresbe they in the form of greed or any other contour. In fact, if we reflect for a moment, we realize that no day goes by without some form of both fear and desire arising. |
|
|
|
|
|
|
|
|
Fear may not necessarily come in the form of anxiety, panic, or a quickened heartbeat. It is often far more subtle, visiting us in the form of aversion (turning off) and avoidance (turning away). We turn off and away from something because we're not sure we know what to do with it or how to solve a problem. |
|
|
|
|
|
|
|
|
For example, at a certain point in this writing, if I am not sure how to best express an idea, I may temporarily distract myself with |
|
|
|
|
|