History lessons…they actually do work!

I think one of the best quotes by Sir John Templeton was “The four most dangerous words in investing are ‘this time it’s different’.”

As media consumers we have been, are, and will be inundated with opinions and “experts”.  I often smile when I – still - hear the words above from media.  It doesn’t matter if market is up, down, flat, or closed the media is relentless with their prognostications.  The reality is the critical lessons of most individual investors are not all that hard to understand, but unbelievably difficult to apply.  That’s because the brain chooses to use the non-rational reactors when emotions run high.  And nothing runs our emotional gauges higher than fear of losing money or being without money.  It’s literally hard-wired.  The antidote is in adhering to time-honored (aka=history lessons) true principles that will not change in any environment or global arena.  More money has been lost in investing due to not following these key principles than any other manner.  That is, in part, the peace of mind we provide to our clients.  We will not abandon what we have learned from history…its way too dangerous.

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