For Sale

I found a real estate magazines from ten years ago when I was listing a house for sale. I was back in the same resort town this weekend and compared the old to the current listings. Even with the current difficulties in the real estate market some of the same homes are on the market for a significant percentage increase when compared to the information I had from ten years prior. What may feel like a significant loss in value when compared to twelve months ago is quite a hansom gain if you expand your time horizon. How often do we get caught in the trap of feeling like we lost something (even if it is temporary) when in reality it is still a net positive? I recall an experiment where individuals would do significantly more to protect $50,000 that was potentially threatened by theft or loss than the same individual would do to gain $50,000 through an existing opportunity.

What is your time horizon? Do you protect what you have more vigorously than taking advantage of growth opportunities? Are you aware of how emotions impact your decision making?

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