18 Jun 2008

Politics and the Weather

Do you ever notice that floods, food poisonings, terrorist attacks, celebrity deaths lead to a rash of hasty legislation on the matter? The same thing happens with investments -- where people invest in "last year's wonder" or decide to become conservative after a stock market crash or aggressive in a boom.

The trouble with these hasty actions is that mistakes made in the heat of the moment often take years or decades to emerge and/or reverse.

Bottom Line: Urgent is not the same as important, and we should be careful when taking urgent actions on important matters.