Global Opportunities Beyond the Radar

Are You Allergic to Losing Money?


I will tell you how to become rich. Close the doors.

Be fearful when others are greedy. Be greedy when others are fearful.

—Warren Buffett



Human nature is a funny thing, isn’t it?

I have observed that people will go through a lot of inconvenience just to avoid inconvenience.

They will go through a lot of trouble just to avoid trouble.

Indeed, they will go through a lot of pain just to avoid pain.

Psychologists and economists have a name for this strange phenomenon. They call it ‘loss aversion’. Here’s what it means:

In fact, you may actually go through the classic five stages of grief:

These stages of grief can feel so intense, they may actually serve to amplify your perception of financial pain. It is for this reason that we saw the stock market take a tumble during two difficult periods in our recent history:


Source: Google Finance


But is behaving like this actually helpful in the long run? Well, let’s take a closer look at the Covid pandemic in 2020. Perhaps we can learn a lesson from this:

Was this a wise move? Well, just consider how things played out globally:

Of course, in retrospect, this investor had made a tragic mistake:

Now, you might think that this investor’s kneejerk reaction to Covid fear is a one-off incident. Surely human beings can’t be that foolish again? But, sadly, they are. In fact, right now, we’re actually seeing a similar response to interest-rate fear:

Source: Visual Capitalist


Well — ding, ding, ding — congratulations. You’ve guessed right:


Source: Forbes


Jean de la Fontaine once said: ‘A person often meets his destiny on the road he took to avoid it.’


It’s time to have your say


I hope that you’ve enjoyed reading our articles as much as we’ve enjoyed writing them:

By the way, I have a small favour to ask:

We truly value your feedback It encourages us. It helps us to do better. It helps us to reach further:



John Ling

Analyst, Wealth Morning

(This article is commentary and the author’s personal opinion only. It is general in nature and should not be construed as any financial or investment advice. To obtain guidance for your specific situation, please consult a licensed Financial Advice Provider.)

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