My Money MD
As an investor, it's critical to document your reasons and expectations for purchasing stock. This helps to counter hindsight bias, which tends to make people overstate after the fact what they anticipated before they made the decision. This is an approach professional investors use, but other individuals do not.
Are we on an investment cliff? Itâ€™s in our nature to assume that current trends â€“ whether good or bad â€“ will continue. But itâ€™s important to keep in mind that the market is random. Predicting its future from the recent past is less than accurate. Thatâ€™s where the statistical principle, regression to the mean, comes in.
Elon Musk is now saying that private citizens can fly to the moon. The cost? A lot â€” millions and millions and millions. But, there is a way for us lesser beings to participate. By visiting the Atacama Desert, the driest place on earth. Its terrain is like the moon. The advantage to more minor mortals is that the price is minimal compared to a moon jaunt, plus getting there and coming home is easier (also safer, I assume).