Perception: For Politicians and Investors It Can Be Lethal

Perceptions: For Politicians And Investors, They Can Be Lethal!

by: Brendan Magee

Especially in America, we feel entitled to our opinions and interpretations.Once we have made up our minds about something that becomes the truth we go by. Unfortunately, before we base our decisions about how we will invest our money or who we will vote we never stop to see if  our brains have misinterpreted what our eyes, ears, sense of smell, and touch actually encountered. In the case of world events and investors account balances it would have been so much better if we could have gotten a perception double check.

"1924, The Year That Made Hitler" documents the trial for treason held when in November of 1923 Hitler and a group of National Socialists failed in an attempt to overthrow the government in Munich, Germany and use that action as a springboard to stage a march on Berlin and overthrow what they saw as the illegitimate government running all of Germany.

Hitler's trial was an international media event. As of 1920 through political rallies, he had become a fast rising political figure. Newspapers across Germany and the world added to the drama. Hitler was now going to   voice his political views and vent his frustrations about the problems facing Germany to the world.

In the German town of Rheydt some 400 miles from the court proceedings and having never met Hitler, a young university-educated  nationalist was eagerly reading the newspaper stories of the trial. In personal diary entries about the trial the young man wrote " "Communism, the Jewish question, Christianity, the Germany of the future. Hitler touches on many questions, but he makes the solution very simple.What is liberating about Hitler is the involvement of a really upright and truthful personality."This young man's name, Joseph Goebbels.

As I read this passage from the book, A. I am finding myself desperately wanting someone to shoot Hitler to stop the horrors he was to bring the world over the next 20 years, and B,  I was remembering a conversation that I had with a client almost eight years ago. Barack Obama was just about to become President of the United States.

I had a client call me up in a high state of upset. She wanted all her money out of the stock market. She said Obama was going to be a disaster for the the stock market and she wanted her money which is what we did, and in so doing terminated our professional relationship. Well,  we are coming to the end of Obama's term in office and here is what $100,000 invested in the various markets of stock grew to from Jan. 2009 through Dec. 2015:

U.S. Large Co. Stock $263,000

U.S. Small Co Stock $297,000

U.S. Large Value Stocks $222,000

As it did for the world with Hitler and my former client's perceptions, relying on them didn't prove to be beneficial for either.  This is why one of the biggest attributes an investor needs to be successful is humility which is defined as thinking less of yourself while at the same time not thinking less of yourself.

Our perceptions are prone to biases, misinterpretations, distractions, half truths, etc. Before coming to any conclusions about anyone or anything people might fare a whole lot better if they asked, "Am I seeing this right?' A five second double check could save a lot of uneccessary heart ache.

Brendan Magee is the founder and president of Inevitable Wealth Coaching. With questions or comments e-mail brendan@coachgee.com or call 610-446-4322