Rich Twin Poor Twin

We watched the new NBC game show “Deal or No Deal” yesterday. It is quite an entertaining show. Howie Mandel is the host of the game in which a player decides whether to keep an unknown amount of cash in a briefcase or take an offer from an unseen banker. Probability is a deciding factor on a player’s winning amount on the game. However, it is fear and greed that is really driving the contestant’s decisions and actions. At one point in the game one contestant was up over 100k and the audience was screaming ‘just take the deal’. She ended up going home with less than a quarter of what she whould have gotten if she did thak that deal.

Sometimes it is hard to fight off one’s fear and greed when we make decisions, especially financial ones. The rich too have to deal with their fear and greed, but they are not slaves to it. The ones who are not rich must run off to work every morning and must do what they deep down truely do not want to be doing because they fear being fired, fear losing a secure job, fear running out of money, fear others will laugh, and also feel the greed for more money – so they work. They work harder and longer to get a bigger paycheck in order to buy things they want, not necessarily things they absolutely need, but things that will comfort and fight off that greed until the next paycheck.

You may wonder why we listed this article under investing. Fear and greed can be seen driving even the stock market. We used market trends that were predicted based on fear and greed to successfully enter and exit the market several times. Further articles on this will be added to the site.