What to Do about Harvey Weinstein to Start the Week Off Right
The Harvey Weinstein drama managed to dominate the news last week. We can learn a lesson from this. But before we dive into all that, let's look at a comment that recently crossed my desk.
Someone noted that their portfolio hadn't "grown," while "the market" recently has. The fact that the portfolio was up for the year escaped his attention, because it wasn't up as much as the S&P. The fact is, he wasn't 100% invested in the S&P, nor had he wanted to be, given the volatility such an allocation would entail. Such volatility was something he preferred mitigating. And yet, with this persistent bull market charging to higher highs all year, it's likely his emotions got the best of him. Of course, his pining for greater gains was a natural reaction. Emotions frequently get the best of even the best of us. There's a lesson here we might use to start this new week off right.
First, when it comes to investing, let's recognize that much, if not most, of our reaction to the action of our investment accounts is driven by emotion. Reason may occasionally play a minor role. But typically that role consists of explaining or justifying what we already feel. This fellow likely felt his account hadn't grown because he didn't see it grow as much as the S&P. The fact that he wasn't invested in the S&P played no role in his reaction. The facts didn't matter. Of course, presenting the facts to help ameliorate the negative reaction might work to set the story straight. Then again, with some people, it might not. Some of us, never for better, always for worse, are almost completely driven by our emotions.
Which brings us to a more general lesson we might learn. Learn to control your emotions. Even better, cultivate the use of your reason. Mankind's general lack of emotional discipline is nothing new, of course. But it does seem to characterize more and more of us these days. And it serves no one well.
For one thing, lack of control of your emotions makes you fair and enticing bait for the machinations of marketers and slick salespeople. These have always relied on manipulative techniques to get you to desire their product. All the text and verbiage they concoct to demonstrate why your decision to buy would be a wise one -whether true or not - serves to reinforce the decision you've already made based on their having manipulated your emotions. They serve at best to deflect buyers remorse, not to convince you to buy. Yes, that's how it works. If you're not convinced, we're not going to spend time trying to convince you. Just wise up. (And I say this as one who has - on more than one occasion - made buying decisions without benefit of reason!)
So to start the week off right, how about we all recognize this dominant role emotion plays in our lives. And once recognized, perhaps we might resolve to keep our emotions on a short leash going forward. After all, do you really want to be the object of manipulation by others? Now don't just answer "No" here and go about your business. Make yourself aware of how emotion tends to drive you this way and that throughout the day. Then find some way to get a handle on it.
Given the fact that emotions are unruly, you might consider how to domesticate and harness these wild beasts. Developing your powers of reasoning could provide some leverage. Of course, many of us will begin from an unfortunately low starting point. Don't be dismayed or offended by mention of this unhappy fact. It's the inevitable result of an educational system that has, for decades, downplayed objectivity in favor of subjectivity, which includes downplaying reason in favor of feelings. The Harvey Weinstein brouhaha serves as a good example.
Over the weekend, whilst shopping at a local produce market, the guy at the register (with whom I usually check out), noted that "our generation" knew all about "the casting couch." As one of "our generation," I knew exactly what he meant. So I responded: "Harvey Weinstein, right?" To which he smiled and answered: "Yeah." That exchange, typically but appropriately terse in this particular old and traditional New York neighborhood, expressed a rational response to the emotionally packed reporting surrounding the sleazy shenanigans of this movie mogul (assuming they're true). My guy had put reason before emotion. He knew the media hype was designed to manipulate your emotions so you'll intently follow this tawdry tale. The more of us who give in to those manipulated emotions, the more viewers and listeners for the media reports, thus the more advertising can be sold to sponsor those reports, thus the more money the media makes to support their next exercise in manipulation. Our typical lack of emotional discipline thus becomes a source of profits for the manipulators.
The fact is, HW's behavior represented nothing new in the interactions between Hollywood producers and actresses. The so-called "casting couch" has likely existed since Hollywood swelled the population of the formerly sleepy town of Los Angeles to the entertainment capital of the world. Lecherous male producers prey on aspiring actresses. (Oh, and let's not forget that some scheming actresses, rather then rely on their thespian skills, use that same couch to advance their careers.) So what's new?
Is any of this is news to you? I hope it's not, but it wouldn't surprise me. But, look, there's hope right around the corner. First, recognize the problem. Then make a decision to do something about it. That will require you to change. And change - frequently touted as "good" - is always hardest when it comes to changing ourselves. Then again, no one said life was supposed to be easy, right?
Getting at least a modicum of control of your emotions will likely improve your investing results, your buying habits, your relationships with others. Give it a shot. It couldn't hurt.
Someone noted that their portfolio hadn't "grown," while "the market" recently has. The fact that the portfolio was up for the year escaped his attention, because it wasn't up as much as the S&P. The fact is, he wasn't 100% invested in the S&P, nor had he wanted to be, given the volatility such an allocation would entail. Such volatility was something he preferred mitigating. And yet, with this persistent bull market charging to higher highs all year, it's likely his emotions got the best of him. Of course, his pining for greater gains was a natural reaction. Emotions frequently get the best of even the best of us. There's a lesson here we might use to start this new week off right.
First, when it comes to investing, let's recognize that much, if not most, of our reaction to the action of our investment accounts is driven by emotion. Reason may occasionally play a minor role. But typically that role consists of explaining or justifying what we already feel. This fellow likely felt his account hadn't grown because he didn't see it grow as much as the S&P. The fact that he wasn't invested in the S&P played no role in his reaction. The facts didn't matter. Of course, presenting the facts to help ameliorate the negative reaction might work to set the story straight. Then again, with some people, it might not. Some of us, never for better, always for worse, are almost completely driven by our emotions.
Which brings us to a more general lesson we might learn. Learn to control your emotions. Even better, cultivate the use of your reason. Mankind's general lack of emotional discipline is nothing new, of course. But it does seem to characterize more and more of us these days. And it serves no one well.
For one thing, lack of control of your emotions makes you fair and enticing bait for the machinations of marketers and slick salespeople. These have always relied on manipulative techniques to get you to desire their product. All the text and verbiage they concoct to demonstrate why your decision to buy would be a wise one -whether true or not - serves to reinforce the decision you've already made based on their having manipulated your emotions. They serve at best to deflect buyers remorse, not to convince you to buy. Yes, that's how it works. If you're not convinced, we're not going to spend time trying to convince you. Just wise up. (And I say this as one who has - on more than one occasion - made buying decisions without benefit of reason!)
So to start the week off right, how about we all recognize this dominant role emotion plays in our lives. And once recognized, perhaps we might resolve to keep our emotions on a short leash going forward. After all, do you really want to be the object of manipulation by others? Now don't just answer "No" here and go about your business. Make yourself aware of how emotion tends to drive you this way and that throughout the day. Then find some way to get a handle on it.
Given the fact that emotions are unruly, you might consider how to domesticate and harness these wild beasts. Developing your powers of reasoning could provide some leverage. Of course, many of us will begin from an unfortunately low starting point. Don't be dismayed or offended by mention of this unhappy fact. It's the inevitable result of an educational system that has, for decades, downplayed objectivity in favor of subjectivity, which includes downplaying reason in favor of feelings. The Harvey Weinstein brouhaha serves as a good example.
Over the weekend, whilst shopping at a local produce market, the guy at the register (with whom I usually check out), noted that "our generation" knew all about "the casting couch." As one of "our generation," I knew exactly what he meant. So I responded: "Harvey Weinstein, right?" To which he smiled and answered: "Yeah." That exchange, typically but appropriately terse in this particular old and traditional New York neighborhood, expressed a rational response to the emotionally packed reporting surrounding the sleazy shenanigans of this movie mogul (assuming they're true). My guy had put reason before emotion. He knew the media hype was designed to manipulate your emotions so you'll intently follow this tawdry tale. The more of us who give in to those manipulated emotions, the more viewers and listeners for the media reports, thus the more advertising can be sold to sponsor those reports, thus the more money the media makes to support their next exercise in manipulation. Our typical lack of emotional discipline thus becomes a source of profits for the manipulators.
The fact is, HW's behavior represented nothing new in the interactions between Hollywood producers and actresses. The so-called "casting couch" has likely existed since Hollywood swelled the population of the formerly sleepy town of Los Angeles to the entertainment capital of the world. Lecherous male producers prey on aspiring actresses. (Oh, and let's not forget that some scheming actresses, rather then rely on their thespian skills, use that same couch to advance their careers.) So what's new?
Is any of this is news to you? I hope it's not, but it wouldn't surprise me. But, look, there's hope right around the corner. First, recognize the problem. Then make a decision to do something about it. That will require you to change. And change - frequently touted as "good" - is always hardest when it comes to changing ourselves. Then again, no one said life was supposed to be easy, right?
Getting at least a modicum of control of your emotions will likely improve your investing results, your buying habits, your relationships with others. Give it a shot. It couldn't hurt.
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