Avoiding Loss Can Be More Important than Making Profits

In the 1970s, athletes flocked to get DMSO—a trend that led them to the unlikely destination of the vacuum store. Today, the once-popular remedy is barely mentioned, joining the long list of “miracle” fads that have come and gone. In the world of finance, the same thing happens: fads may explode onto the scene, only to fade away and often leave financial loss in their wake.

While some trends are harmless, jumping on every new financial fad can be risky. Just because “everybody’s doing it” doesn’t make it a good idea. Processionary caterpillars famously follow each other in endless circles, often to their demise—a strong metaphor for following trends blindly. Financial fads may have their appeal, but guarantees and stable principles stick around through thick and thin, weathering all market conditions.

In today’s episode, we discuss the importance of examining new financial ideas carefully. Don’t let fleeting trends burn through your life savings. Look past the surface excitement and focus on long-term, sound financial strategies that keep your wealth secure.

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Resources:

Order Doctoring Data by Dr. Malcom Kendrick on Amazon.com

Black Swan Video Summary by John McFie