Finance: how it works ... "I´ve learned some lessons" ...

I'm Just Now Realizing How Stupid We Are About The Economy

MORGAN HOUSEL

This is my 3,000th column. I've learned a tremendous amount in writing about investing and the economy. Here are a few of the big lessons.


I've learned that changing your mind is one of the most difficult things we do. It is far easier to fool yourself into believing a falsehood than admit a mistake.

I've learned that people are terrible at predicting their own emotions. You will be more fearful when the market is crashing and more greedy when it is surging than you think.

I've learned that strong political beliefs in either direction limit your ability to make rational decisions more than almost anything else.

I've learned that short-term thinking is at the root of most of our problems, whether it's in business, politics, investing, or work.

I've learned that debt can cause more social problems than some drugs, yet drugs are illegal and debt is tax deductible.

I've learned that finance is actually very simple, but it's made to look complicated to justify fees.


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