Joseph's "Just My Thoughts"

Human relationships can break down in an instant, but most are the result of long-term mistrust. Likewise, reliability is built over time. A single special trigger can initiate this breakdown, with all outcomes being a continuous accumulation of small factors. When you reflect on your relationship, you may identify a certain pattern by reconsidering what earned your partner’s trust and what let them down. That pattern reveals my true self exposed to the outside. - Joseph’s “just my thoughts”

The most important aspect of investing is managing risk. However, in most cases, risk management is interpreted and assessed in relation to past patterns. When asset prices fall, the perceived risk appears significant. That doesn’t imply there weren’t risks; investors simply didn’t recognize the risks that originally existed. The level of risk is almost identical whether the price of an asset goes up or down, but when prices decline, they tend to drop further because fear prevents us from purchasing more assets, leading us to retreat. It’s not that the risk has escalated. It is unwise to link risk with past patterns. There have been numerous exceptions in the world, and many beings on this planet have disappeared because they could not adapt. Did dinosaurs not become extinct on Earth ? Exceptions are exceptions because they are unpredictable. - Joseph’s “just my thoughts”