Monday, February 23, 2009

Behavior and Belief

There is a reciprocal relationship between how we behave and what we believe. Many of us have an inclination to move from euphoria to despondency , from faith to fear. Financial history has always been a roller coaster ride of up and downs and this time is no different. It is important that we see ourselves and our money as being in continuity with longer term economic history as opposed to being separate or apart.

The funding of our personal/family long term goals is why we are investing in the first instance. The range of possible outcomes depends on our actions- on our behavior- at times such as this. It is important that we not fixate on the short term political/economic turmoil and stay with our long term plan. That is the best path to recovery.