Why Fear Works

There are two things kids cannot tolerate.

They cannot tolerate (1) not knowing the rules and (2) not belonging to their family of origin.

I want to talk to you about point #1, not knowing the rules.

Why do you think kids want to know the rules?

Seriously think about this, you were once a kid, why do kids want to understand and know the rules?

I’ll tell you. Kids and even adult kids (that’s you) want to know the rules so they can have “certainty”. Kids and adult kids want to feel certain about the future.

Because when they do, they feel safe.

And since we are all walking around with a brain that was designed to survive getting killed by animals with big teeth, our brains look for ways to feel certain.

BUT… and this might sound weird to some people…

We don’t actually want to feel certain.

Because if we do, we let down our guard and when our ancestors did this 1,000 or 10,000 or even 100,000 years ago. They died.

And if you are reading this email then your ancestors focused on keeping fear a focus of theirs.

So fast forward to today.

Your email inbox is getting assaulted with daily sales emails telling you how the S&P500 is going to crash 50%… and probably very soon.

Or how gold is going to fall to $400… this year.

Or how the end of America is here.

Really!

I get it.

Fear is a great sales tactic. And it works.

Because it wakes up your limbic system and gives it a job to do.

People, your limbic system (the part of your brain that manages emotions) was designed for a time when animals with big teeth could actually kill you.

That doesn’t happen anymore. But your limbic system doesn’t know that. And so your limbic system seeks out uncertainty… so it can survive.

— — —

Today, the leading cause of death in the US is heart disease.

And do you know what the leading cause of heart disease is…?

Life style. Specifically sitting around, eating and smoking.

I’m not kidding, look it up.

The leading cause of death in the US is laziness.

To harsh.

Not really.

So, what’s the leading cause of lost wealth in the stock market.

In an abstract way, it’s people looking for uncertainty when there isn’t any.

What if you could be certain? Would that be okay?

Also… other leading causes of lost wealth:

– not having a plan.
– not expecting a large loss.
– not planning for a large loss.
– not following the price charts.

You get it?

Have a plan that expects uncertainty but understand that most of the time the markets are moving higher. Like today.

I want to show you four price charts that can easily be turned against you, so you load up uncertainty and buy some “pick of the month” newsletter that is going to underperform the S&P500.

You can get access right here to episode #344.

In Your Corner,

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RC Peck, CFP  

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