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The Investor's Advocate: Of Median Importance


 Predicting Some Stock Market Crashes May be Easier Than You Might Think


Is our human nature to blame for stock market crashes? And if so, doesn't that make them easier to predict? These questions and their answers are explored in a thought provoking post called "Nothing In Excess" (https://www.howtoinvestblog.net/2017/11/nothing-in-excess.html), by Anthony Rhodes, the owner of wealth management firm The Planning Perspective (www.theplanningperspective.com) on his popular How To Invest blog (www.howtoinvestblog.net).

"The ability to predict many stock market crashes lies inherent within us all." he began. "The challenge, of course, is that the intellectual components of our human nature, which allows us to anticipate coming crashes, is in a constant struggle with our emotional ones, which impairs our ability to notice them." he added. "Whichever of these forces wins out will determine whether we are on the upside or downside whenever the crash decides to rear its ugly head." he explained.

Mr. Rhodes delves back to an ancient tool from our far past to convey the message delivered within the post.

"I've always had an interest in philosophy, and have noticed that many philosophical insights easily translates to economics in general, and the stock market, more specifically." he continued. "This particular tool has aided me quite considerably in both my personal and professional life. And if investors add it to their arsenal, I'm confident that it will help them, as well." he closed.

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