Amnesia

Jason Zweig writes the following in “The Devil’s Financial Dictionary”:

Wall Street suffers from many ailments also, but amnesia is foremost among them. By burying the past, the financial community can disavow any responsibility to learn from its own mistakes and can minimise the odds that its clients will be able to learn from other people’s mistakes.

In the above paragraph, “Wall Street” is representative of investors at large. That is exactly why in the “Introduction” chapter of the book I have written the following words:

Our memory is short-lived. I would strongly suggest you keep reading this book every year to keep your memory refreshed. (That is why we are printing this book in hardbound format).

#RidingTheRollerCoaster – 253

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What goes up …

Sooner or later – often sooner than anyone expects – what has gone up will come down. Likewise, whatever has gone down will rise again, typically when the experts least expect it.

  • From the introduction to the book “The Devil’s Financial Dictionary” by Jason Zweig

 

#RidingTheRollerCoaster – 251

The financial past – rhymes

The financial past doesn’t repeat itself exactly, but it rhymes. Human nature never changes, no matter how vociferously someone tries to tell you that this time is different. Fads come and go, but fees are forever. On Wall Street, everything has been tried before. Whatever it is, it will almost certainly turn out the same this time as last time.

  • From the introduction to the book “The Devil’s Financial Dictionary” by Jason Zweig

 

#RidingTheRollerCoaster – 250