Do you remember your first kiss? I’ll never forget mine. It happened on a warm, sunny day in the spring of ‘67. As we hid in the ‘Garden of Eden’—bushes in a nearby park—little Mary Edwards introduced me to an exciting new world. When word got back to my fifth-grade buddies, I was teased like nobody’s business. But that moment of embarrassment was well worth the happy memory I have today.
When you think about it, everything in life is about feelings. Everything. Taking a trip, watching a football game, listening to a favorite song, having dinner with friends … all involve feelings like anticipation, excitement, and delight. Holidays too are all about feelings: New Year’s Day (hope, renewal), President’s Day (admiration, respect … at least for the ones featured on coins), Independence Day (pride, unity), Christmas, Easter, and Hanukkah (anticipation, joy, ‘Merry’, ‘Happy’), Halloween (fright, excitement); Memorial Day, Veteran’s Day and Thanksgiving (gratitude, remembrance). This month features Valentine’s Day, celebrated for centuries in countries around the world. It’s the only day dedicated to a feeling, to a positive and profound sensation that can last a lifetime … love.
The present … a present?
Thinking and feelings happen in the moment. However, the two are often in conflict. While it's the long run that counts, humans are wired for the short term. For investors, good feelings (financial security, satisfaction, keeping up with the Joneses, etc.) are the objective. But emotions (excitement, impatience, fear, greed) often interfere with making good decisions. If you’re an investor, you probably feel a slight twinge when you hear that the Dow ‘fell’ or ‘plummeted’, or you notice too many red pixels on your stocks app or computer screen. These feelings in the present, however, have little to do with hoped-for feelings down the road.
History is a string of events triggered by emotions, often with horrendous results. To encourage better behavior, in the 6th century Pope Gregory I enumerated the Seven Deadly Sins, five of which are feelings (lust, gluttony, greed, sloth, wrath, envy, pride). For investors, the Three Deadly Feelings are fear, greed, and impatience, all on display during the recent bull market in everything. Conceived in the ecstatic embrace between ZIRP (zero interest rate policy) and FOMO (fear of missing out), asset prices increased and passions surged, thereby creating a vicious circle. But last year, the orgy ended when the Fed removed the punchbowl. With investments, love is a one-way street. Unlike your honey, your money will never love you back.
Zirp and Fomo, circa 450 B.C.
Valentine’s Bonus – The Lady in Red – here.
Valentine’s Question – How did the heart become the symbol of love? The answer is here.
Valentine’s Quote – “I measure success by how many people love me.” – Warren Buffett … self-made billionaire.
Happy Valentine’s Day. Spread the love.
Copyright © 2023- Any opinions are those of James Aldendifer and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. Investing involves risk and you may incur a profit or loss regardless of the strategy selected. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members.
