One of the shortcuts we use is to follow expert advice. There is nothing wrong in following an expert’s advice, so long as the person is really an expert. However, for many of us it is extremely difficult to know whether one is an expert in the field. We often confuse money, wealth, fame, or media appearance with expertise. We perceive confidence as expertise. Beware of such experts.
You may want to read this blog post about how marketers use various influencers – people as well as media. Please do not take this as my view against Infibeam or Twitter. These have only been mentioned in the blog post. The game is very old, e.g. celebrity endorsement for various products. It is just the ground and the players that get changed.
Important to understand is that we do not become victims of such tactics.
Especially in stretched times – extremely high levels of markets or very low levels – very high emotional state – we are likely to fall prey to such external influencers. Maintain a balanced mind. Maintain equanimity. That is the key to investing success.
#RidingTheRollerCoaster – 104