Validation! The stock market declines!
This is an oldie but a goodie. Take a few minutes and you'll enjoy it.
Last week, we talked about "confidence" and how it can often be the enemy of good investment decisions. This week, let's look at the opposite point of view. Often, as strange as it sounds, or passé, the object of our thinking is the object we bring into our lives.
So why would it be any different with investments?
This year, the stock market is down, at least as of the time of this writing. Last year was one of the best years on record. On average, "we're ok, I guess," to borrow a line from the middle of this short movie. Do you think you have the ability to affect the investments in your portfolio by thinking positive thoughts?
Well, as crazy as it sounds, the collective thinking about investments and the companies we are buying does affect the market. It is, in fact, the market itself. When we focus on the "negative" we see more of it everywhere we look. When we focus on the positive, we find it. And then, when we focus on the market with our positive viewpoint, somehow we even look at declines in a positive light.
The declines in the market are the exact reason why we want to invest more money in the market. That downward volatility, or risk, that scariness, is the reason why investing in stocks earns more than other investments. Some of us are scared out!
I don't know if you'll make it to the end of this 15 minute movie. Needless to say, it is a happy ending!