Investing as a sport?Written by David Leonhardt
I said last week that money doesn't generally buy happiness, but lack of it can buy absolute misery. This, by way, is not just my personal observation. It is conclusion of some of most respected happiness researchers (Yes, there is such a thing -- read my book.)The trouble is that we have to pay attention to money more when we lack it than when we have it. This doesn't seem fair, but Lord works in mysterious ways. Most people are invested in stock market, either directly or through mutual funds, pension plans or some other vehicle. So it is hard not to be part of Panic Crowd. But I ,in all my financial wisdom, have two golden rules to offer. These may not make you rich, but they will keep you happy. Number One: Place your investments in safest vehicles possible (Do as I say, not as I do!) and forget about them. When next recession ends, take inventory and see that you still have investments. Most of us don't get a rush out of watching our investments plunge or yo-yo up and down. Most people are happier when they forget they even have investments. Number Two: If you are one of those people with a terminal case of Itchy Trading Finger, then you probably would not be happy ignoring your investments. Place aside what you need for long term, such as retirement if your heart lasts that long. Don't play with this money. Don't touch it. Trade only with "extra" money. The rest of you are asking, "What's that?", but Itchy Trading Fingers know what I'm talking about. They view stock trading as a sport. In fact, stock trading is a sport. Much more than, say, hunting. Think about it. In a sport, two equal opponents square off against one another. "Let best one one win." Each faces same challenges. Each is armed with same weapons. Each has an equal chance of feeling thrill of victory and agony of defeat (unless, of course, you happen to be Tampa Bay Devil Rays).
| | Staying Sane While Wall Street CrashesWritten by David Leonhardt
Everybody is riding Wall Street Roller coaster. Even if you are not invested, headlines scream out one word: PANIC!It's hard not to join in panicking. The Panic Crowd seems to be having all fun these days. But they don't have all happiness. You see, it's true what your mother told you: money doesn't buy happiness, at least not for most people. But lack of money does buy pure misery. Did you ever wonder why so many office towers have fusion-sealed, micron-proof windows to keep office workers safe from any semblance of fresh air? It has to do with stock market. During The Great Depression, just too many brokers were jumping out of windows. This enraged a nation of vengeful investors, who demanded to kill their brokers personally. So henceforth all windows were sealed. (The good news is that by time windows were sealed, The Great Depression had ended, so there have been very few reported cases of enraged investors killing their brokers. However, there have been several incidents of "office air suffocation syndrome" -- but that's another issue for another column.) Oh no! Not another Top Ten list! Here are The Happy Guy's Top Ten Tips for Staying Sane While Wall Street Crashes Around You: 1. Don't panic. Enough people are doing that already; you're needed elsewhere. 2. Don't join Panic Crowd. They are NOT having more fun, they just act that way to attract new members fold. Misery loves company. 3. Take inventory. Do you have basic necessities? If so, you are OK. When they come to take away your television remote control, then panic.
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