Why Do Stock Investors Care So Much???

Seth Godin had a great post that immediately made me think of investors. You can read below where I have cut and pasted it in its entirely. 

The Anatomy of Annoying

Pema Chodron’s story has stuck with me for a decade: At a meditation retreat, the guy sitting near her kept making an annoying clicking sound.

Again and again, she was jolted from her practice because he kept clicking his tongue.

During the break, as she gathered up her courage to tell him that he was ruining the day for her and for everyone else, she realized that in fact, it was a nearby radiator that was causing the clicking.

Suddenly, the fact that it was an inanimate object changed everything for her.

It wasn’t about her any longer.

It wasn’t intentional or selfish.

It was simply a radiator.

The rest of the day was fine, because it was simply a radiator.

My biggest takeaway is that the key leap wasn’t in discovering that the sounds came from a radiator. The lesson is that acting like it comes from a radiator completely solves the problem.

Sometimes (often, usually), it’s not about us. It’s simply weather.

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Why do investors care so much why the market goes up?

Shouldn’t they care more whether it is or isn’t going higher? But they don’t. The market has to go up for the right reasons. Share buybacks are the wrong reason. So people don’t invest even though the market goes up. 

The P/E ratio is “too high” so people don’t invest even though the market goes up. Trump gets elected so people pull their money from the market even though the market goes up. 

What if investors thought about the movements of the market more like a radiator sound then some annoying guy clicking his tongue? 

What if the movement of the markets was more like a weather pattern than [kinda] made up data like earnings and valuations and ISM economic data?

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

P.S. This has been a crazy full week for me and I’ve had to step back a little bit. My kids are in two different schools with two different schedules. That means a bit more shuffling around town for me. Therefore a shorter post this week. I’ll be back next week with my usual post, observations and a video for all my Money Badgers.