Get this straight. The media plays an important role in YOUR life, so learn to use it sensibly.
When there is some event which can grab TRP media plays it up. IT IS THEIR JOB. However it is your job to remain calm.
Let us say the Coast Guard blows up a small boat. The way the press reacts and the way that YOU need to react are different. This is obvious, is it not?
However when an economic event happens, if you react the way the media reacts, you are doomed. Let us say the headlines says…”market falls by 930 points – THE HIGHEST FALL EVER”. What are you supposed to do?
NOTHING. Absolutely nothing. Put things in perspective. When the market was at 1000, it could NOT HAVE FALLEN by 900 points, right? However when the sensex is at 30,000, the 900 point fall does not matter. It is ONLY 3%. And markets will go up and down by this number anyway. Markets can be irrational, YOU have to be calm.
To quote Motleyfool.com the world loses 20,000 iron ore miners ANNUALLY. However if they were to lose one man to nuclear mishaps..there would be a furore.
WE react to different risks differently. To a rare risk we react worse. Our media reacts to an air crash like they knew how to prevent it. However when you tell them that India loses one JET LOAD OF PEOPLE EVERYDAY to car accidents, there is just a muted ‘OMG’. Will the MSM do a story? will they take baby steps to increase safety awareness? – this is departure from the media role, is it?
We will worry about outcomes and not do anything about the processes.
We may ocassionally get some product right or some investment decision right, we will NOT be able to repeat it, because we got there by LUCK not by a plan. That is risk.
How to stay healthy? eat simple, wash your hands properly, eat right, and exercise regularly.
How to be safe? cross the road carefully, be sober while driving,
How to be safe while investing? keep investing simple, take a term plan, index fund, one savings account…
Yuck all this is so simple WE KNOW IT, DO WE NOT? lol….
problem is WHO WILL DO IT?
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