Some things you can unlearn
 Don’t be a catastrophic thinker Practice not expecting the worst scenario    Markets won’t recover from a dip        ...
 Examine your approach to explaining events We should all be market optimists.    Not “Rose Colored” Optimists, but bas...
   Over generalization       View single temporary event as permanent state of        affairs   Jumping to Conclusions ...
Changing Your Thinking Prior to a Financial Crisis
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Changing Your Thinking Prior to a Financial Crisis

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Changing Your Thinking Prior to a Financial Crisis

  1. 1. Some things you can unlearn
  2. 2.  Don’t be a catastrophic thinker Practice not expecting the worst scenario  Markets won’t recover from a dip  Look at historical data  Discouraging world events  Review past devastating events and their outcomes  Control your fear  Identify best case possibilities and determine how likely they are  Weigh evidence and facts available and develop realistic contingency plan for coping with the situation
  3. 3.  Examine your approach to explaining events We should all be market optimists.  Not “Rose Colored” Optimists, but based on market reality Avoid the blame game  Negative emotion is seldom helpful in managing or dealing with difficult situations  Permanence and pervasiveness are thinking patterns that don’t work well in difficult situations
  4. 4.  Over generalization  View single temporary event as permanent state of affairs Jumping to Conclusions  Wait for all the facts before coming to a conclusion Exaggeration or magnification  Mountain out of a molehill Minimization  Discount the positive Emotional Reasoning  Assume the way we feel is the way things really are  Not being objective

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