People have this general tendency to overreact as well as being myopic. Shares plunged after China raised their bank reserve rates by 50 basis points to 17.5% in a bid to control inflation. True it may have some short term effects on the economy but it's implemented to reign in inflation, which I feel is a greater threat since it has social-political consequences. Inflation in China hasn't been as high as expected, possibly due to the tightening of monetary policy which is, technically speaking, bad for businesses since it's harder to get loans. There is this general tendency to overreact to both bad and good news, also known as irrational exuberance by Greenspan.
On a personal level, perhaps, we too are guilty of overreacting when times are good and being overly depressed when times are bad. But truly, no one knows where you will be tomorrow. Mastery over your emotions is pretty key to being successful in most areas, especially in the sectors of leadership and money markets. Just know that tomorrow will be a better day if you've already had a horrendous day today!
On a personal level, perhaps, we too are guilty of overreacting when times are good and being overly depressed when times are bad. But truly, no one knows where you will be tomorrow. Mastery over your emotions is pretty key to being successful in most areas, especially in the sectors of leadership and money markets. Just know that tomorrow will be a better day if you've already had a horrendous day today!
June 19, 2008 at 11:49 PM
Mastery of emotions...I agree. Truly hard to master, nonetheless control.