Did you read my last post on the emotional fluctuations of the stock market as a result of the financial crisis surrounding Greece? Well, the fickle and emotionally volatile market has struck again.
On Thursday morning EST, the Greek Prime Minister announced that he was shelving his controversial referendum plan. Surely his initial inclination to conduct this referendum was to make sure that the people understood – and supported the fact – that their hands would be tied by the rest of Europe if they agreed to accept the plan that had been proposed. My hunch is that the rest of Europe slapped Greece around behind the scenes a bit, and Greece backed down, realizing that the only way to save itself – and potentially the rest of Europe if it went down the toilet – was to accept the plan.
That said, the American market loved that the referendum was off and the plan was on. Once again, faith was renewed in economic recovery. Hooray.
Up and down and up and down. Multiple fluctuations between 1 and 2% day after day and week after week, all because of an emotional reaction to a situation materializing in Greece.
Market fluctuations are normal, but can’t they reflect the actual state of the economy and business? Must they be tied to the whimsical reactions of our emotions towards the ideas of Greece’s situation? Do you hear the vagueness in that last sentence? That’s because it represents the tenuous connection between our stock market and Greece’s referendum.
Once again, I reiterate: you can’t be as smart as the last person you talked to. It’s not healthy. It’s not safe.
Take some balancing medication.
Do not allow your plans and your feelings and your actions to oscillate dangerously every time you hear something new. Learn to process information collectively and act on its aggregate.
Our reactions to the situation in Greece and Europe are a roller coaster – and not the fun kind. They’re the kind you get on after too much funnel cake and Coke and that are a little too rickety. Have the emotional maturity to know when not to get on that roller coaster. Watch your friends and strangers get on. Keep your cool and and make wise decisions when faced with crisis all around you.