There is one tool constantly discussed and reported on in the financial press that you may be surprised actually doesn’t work all that well when it comes to long term investing It’s called economic forecasting.
John Kenneth Galbraith was a Harvard economist that after years of study concluded, “The only function of economic forecasting is to make astrology look respectable.”
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I just finished reading Richard Thaler’s book called “Misbehaving” which reviews the history and studies done on Behaviourial Economics – how human behaviour (regarding financial decisions) effects the economy. Richard coined a phrase called “myopic loss aversion” which suggests the more we look at our portfolio, the more we are likely to focus on the losses (due to the constant but temporary volatility) the more we see losses, the more we experience loss aversion and the greater the chance we’ll do something typically not best for our long term success. If you are looking at your portfolio more than once a quarter and finding you get upset at what you see, I recommend you read this article from Ben Carlson.
Habitat for Humanity builds homes for people all over the world. If you feel drawn to do something different for a vacation, consider helping a community build a home. This is an open invitation for anyone interested in a build in Fiji this October.
Marc Caron, Team Leader with Habitat for Humanity Canada Global Village program invites you to join the thousands of volunteers from around the world who are working hand in hand to eliminate poverty housing one house at a time. Work with a family to help them build a home, strengthen their community and enrich both their lives and your own.
Marc will be assembling a team of 12 to 16 volunteers for a build in Fiji from Saturday September 24th through to Wednesday October 4th. The budget estimate at this point is between $4,700 and $5,100 per person, which includes airfare, room and board, transportation and R&R for the 12 days. Volunteers are eligible for a tax receipt for these costs with the exception of the R&R portion of the trip.
If you are interested please contact Marc directly by e-mail at firstname.lastname@example.org An information session will be organized in late February or early March for those interested in getting more information.
A Global Village trip can be a life changing experience. It’s an opportunity to gain a greater understanding of development issues, to learn more about another culture and about yourself.