Markets have already reacted to what we think is going to happen next.
So, if you think Disney stock is going up, the market has already reacted. If you think Facebook is going down, it has been prepared to go down for a while.
You can’t out-think the market because it is a reflection of us. And what it is reflecting is knee-jerk reactions.
Because when projections don’t match the experts, investors become disappointed. (And yes, to boost Q4 we see many people lose their jobs.)
It’s crazy to think that a company like Amazon can make 60 billion dollars in its first quarter and there are still worry about this kind of growth is going to eventually slow down.
As if it would be a problem if they only made 25 billion next quarter?
The same is so true in our culture and the way our brains work.
It is so difficult for us to be vulnerable enough to enjoy the highs because we know that it can’t possibly last forever. That at some point it will all come crashing down.
Once we begin to think of something, the chemicals in our brains have already decided beforehand.
Just like markets. We rationalize in a reactionary state.