Posts Tagged ‘Greed’

The market is getting rocked by giants swings of volatility.  When it goes up, everything is just the b-e-s-t ever!  And when it goes down, everything is just the worst, worst, worst!

It’s hard not to get caught up in the wash.

Two fundamental emotions drive investing and the stock market:  Greed and Fear.

Greed that you want even more… and fear that you’ll lose everything.

We had an interesting debate the other night:  What’s stronger?

For my money:  Greed.

Because the people involved in the stock market are a self-selecting group… they are, by nature, aggressors.  They want better food… better clothes… better cars… better houses.

So the natural bias of the people that make up the market — over the long run — is up.

That thought gives me a bit of comfort as we watch the market chunk lower.

In many ways, Gordon Gekko did have it right, right?

P.S.  I think this also has to do with ever-increasing population as well… as in, the more people we have, the more things that get bought, benefiting public companies.  But this concept is for a different post.  :)

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