An interesting read about British manners. An excerpt:
British passengers on the Titanic died in disproportionate numbers because they queued politely for lifeboats while Americans elbowed their way on, an Australian researcher believes. David Savage, a behavioural economist at the Queensland University of Technology, studied four 20th-century maritime disasters to determine how people react in life and death situations. He concluded that, on the whole, behaviour is influenced by altruism and social norms, rather than a “survival of the fittest” mentality. However, on the Titanic he noted Americans were 8.5 per cent more likely to survive than other nationalities, while British passengers were 7 per cent less likely to survive.
But if Americans are so smart why did we follow the social norms of sitting in mutual funds no matter what to our extreme economic disadvantage?
June 19th, 2009 at 6:26 am
Because it had been drilled into them by people who should have known better that buy-and-hold of mutual funds was the way to make $$ in the long term and besides, no one can successfully time the market.
Of course, many of the so called experts cut their teeth on a raging bull market and knew no other. They probably believed, and more than likely still do, that the market will recover to levels higher than before. What they fail and continually fail to realize is that although the market MAY reach heights it has not seen, the majority of people retiring (the baby boomers) do not have the long term to make up their losses while they are withdrawing their living expenses.
June 19th, 2009 at 8:47 am
Because shuffled and elbowed for easy money. Now let them be drown by their prophets - the holly TV, FED chairmand and the Prophet of Omaha. ;D
June 19th, 2009 at 9:11 am
…… because when it comes to money , stupidity is universal .
June 19th, 2009 at 9:17 am
The example describes a “me smarter than you” attitude (at best), which has no correlation with actual smarts. As a matter of fact, I think this attitude leads directly to “I can´t admit I was THAT wrong! I´ll just have to wait for the market to turn!”
June 19th, 2009 at 7:14 pm
Because people think certain things are impossible until they actually see them done, like market timing and “no-hands” bat swinging:
http://www.youtube.com/watch?v=YngyMco72QA
And even when they see it, alot still don’t believe it!