WHY DO WE KEEP GAMBLING ON STOCKS AND BONDS?
My amateur study of professionals at large who are typically high achieving and high-income earners reveals that we have a high tolerance for risk. There is no secret there, and researchers have been looking at that for a millennium.
But why is it in today’s day and age that high-income earners who are also subjected to the highest tax rates feels compelled to gamble with their hard-earned after-tax dollars when we know full well the chances of success are minimal, if not ruinous?
One of the investment newsletters I subscribe to recently touched upon the word “folly”. It is a noun, and it generally means a lack of good sense, understanding, or foresight or an act or instance of foolishness or a costly undertaking having an absurd or ruinous outcome.
We have all done it. I have done it. My mentor Milan Somborac says he has made every mistake known to the investor and I think I am not far behind him. Thankfully, I could afford to make most of those mistakes, but one was darn near the end of my financial well-being. I escaped with dignity because I used foresight to know to get out.YOU NEED TO LOGIN TO VIEW THE REST OF THE CONTENT OR LEAVE A COMMENT. Please Login. Not a Member? You can now sign up for $12 for a one-year membership. Join Us