Some people, it seems, would swing a sword to defend their favorite type of investing. Plenty will argue that real estate is best. Others prefer the stock market. But they’re both great investments……for those who use their heads.
Neanderthals were probably pretty tough. In a no-hold’s-barred cage match, my ancient ancestors could have pummeled me to a pulp. Unless you’re a mixed martial artist, you might be equally outmatched. But we have something the ancient ones didn’t: a much bigger brain. Unfortunately, despite the added cerebral juice, our brains haven’t evolved as much as we might think. We run towards perceived opportunity and we run away from perceived danger. But such perceptions are often out of whack.
Recent forecasts make the future look bleak. An organization in the Middle East has vowed to limit the sale of oil to the west. Oil prices could quadruple. They’re expecting daylong line-ups at petrol stations when you go to fuel your car.
You wouldn’t do surgery on yourself, so why would you try to manage your own investments? This statement might offend some people. Others would nod in agreement. Most financial advisors are in the nodding camp. Plenty of them bring up Dalbar’s data to convince clients that they can’t invest on their own.
After feeding her 2-year old daughter, 35-year old Yasmin Sewgobind walks up to the pull-up bar that hangs in her home. She does a total of 35 pull-ups: 5 sets of 7 repetitions each. She then does a short yoga routine. After that, Yasmin quickly showers, drops off her daughter at a nearby nursery and drives to work.
I was speaking to roughly 500 high school students in Singapore last week. The students represented about 50 different nationalities. Many were American. At one point, I asked them to call out brand names that they thought most millionaires are attracted to. They hollered out names like Rolex, Gucci, Porsche, Ferrari, Prada, and Louis Vuitton.