As markets fall and fear rises, it’s only human to lose the ability to distinguish between a temporary decline and a permanent loss.
“This time is different.”
These four words capture what one of the great investors and philanthropists once said.
His view is that our minds incorrectly focus on differences rather than similarities, and recognizing similarities helps us avoid repeating the same mistakes.
All patterns in the market are essentially the same as those in history, but as humans, we can’t help thinking, “This time it’s different.”
We wouldn’t be human if we didn’t feel this way, but feeling it and acting on it are two very different things. Only the guidance of an advisor can help during this critical situation.