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Wednesday Wisdom from Mark Matson
Should investors try to predict the future? “I always have to remind investors to stop playing God. Specifically that means stop trying to predict the market, and stop trying to forecast the market. Above all, it means stop trying to find anyone else who says they can do these things, because anyone who tells you…
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Mark Matson on Prudent Investing
The complexity of investing and the overwhelming tendency to perpetuate self-destructive investing behavior make it seem only natural to seek professional help. Many Americans turn to financial planners, brokers, or fee-based money managers. But are these professionals as a whole any better than Main Street investors when it comes to following the simple rules of…
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Matson on Investor Courage
Trying to play God with the financial markets is highly destructive. So don’t try it. In the end, you will guess wrong. Instead, have the long-term courage to take the long view and stick to your plan. Know that courage doesn’t meant the absence of fear. Courage means feeling the fear and doing the right…
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Matson on Investor Emotions
You will often hear so-called investment experts say things like, “You have to eliminate feelings from the investment process.” There is only one problem with that: It is impossible. No one can completely eliminate feelings and emotions from the investing process, because everyone is human. Pretending otherwise and believing your emotions won’t come into play…
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Matson On Dysfunction Loves Secrecy
Most of us have been taught that investing is a solitary experience; that what we do is we go and meet with our financial planner or our financial advisor, and don’t talk about money with others, don’t share what is going on, and certainly don’t share your fear, or your apprehension, or your goals, or…
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Wednesday Wisdom from Main Street Money
Matson On The Financial Media They need readers and viewers to sell advertising. It is all about profits and the way to keep you watching and reading is to tap in your emotions, instincts, and perception biases. They magnify the urge to speculate and gamble. Many of them believe it is their job to help…
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Wednesday Wisdom from Main Street Money
Matson On Necessary Lie Syndrome A necessary lie is a lie we tell ourselves just before we engage in unhealthy or dysfunctional behavior. For speculation masquerading as investing, it is, “This time is different. I really do know what is going to happen this time.” You can probably think of a time in your life…
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Wednesday Wisdom from Main Street Money
Matson On Market Bubbles Losing money in bubbles is not just something that happens to “dumb” people or “other people.” It can happen to the most brilliant of people, it can happen to you, and maybe it has in the past, and it can literally destroy your life savings. No one knows where the next…
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Wednesday Wisdom from Main Street Money
Matson On Facilitators It’s my belief that financial advisors don’t want to upend the gravy boat, and thus tend to tell clients what they want to hear. Instead of helping you fight your instincts, emotions, and perception biases, they inadvertently use them against you. There is good news and bad news in that scenario. The…
