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Reaction vs action under uncertainty

Raluca

🥵"How you behave as an investor during late 2008 and early 2009 will likely have more impact on your returns than everything you did from 2000 to 2008" (Morgan Housel)


⚠️How we react in times of high uncertainty is a function of many variables with knowledge being only one of them. 🤔As a result, reactions are very different even among similarly experienced and knowledgeable individuals.


↪️The divergence comes from different perceptions of the situation and different attitudes towards uncertainty.


↪️That's where knowledge meets subjective mental filters and determines what possibilities we see as choices.


☺️In the face of uncertainty some might agonize over one Yes/No decision and others might see many different choices.


😉For decision making a balance usually serves us best in order to avoid analysis paralysis.


🤯To handle decisions in a timely manner when predictability is a challenge you need to become aware of your mental filters and gain the flexibility to self-challenge what can work against you. 😎This enables you to really separate mental narratives from facts and make the best of your knowledge and experience.

 
 
 

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