My Trump money les­son

Auckland City Harbour News - - OUT & ABOUT - ROB STOCK

Don­ald Trump made a mon­key of the me­dia.

Not only didn’t the world’s me­dia be­lieve he could win the US pres­i­den­tial elec­tion, but it also ran sto­ries promis­ing global share mar­ket melt­downs if he did.

This mat­tered to peo­ple here as around a third of Ki­wiSaver money is in­vested in shares listed on over­seas share­mar­kets.

So per­va­sive was the pre­elec­tion Trump-as-eco­nomic-an­tiChrist cov­er­age, that a lot of peo­ple, my­self in­cluded, won­dered about selling all my in­vest­ments and putting ev­ery­thing into cash.

I didn’t, though I did drag my feet on rein­vest­ing some money in case a Trump vic­tory led to mar­kets crash­ing.

In my job, I get to hear a lot of peo­ple’s fore­casts for the fu­ture. They are of­ten wrong. That’s not sur­pris­ing. They are hu­mans.

To be hu­man is to be wish­ful, and wish­ful think­ing leads us to be wrong about the way the world re­ally works.

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