CHANGING YOUR THINKING

PRIOR TO A FINANCIAL

CRISISSome things you can unlearn

CHANGE YOUR THINKING Don’t be a catastrophic thinker Practice not expecting the worst scenario

Markets won’t recover from a dip Look at historical data

Discouraging world events Review past devastating events and their

outcomes Control your fear

Identify best case possibilities and determine how likely they are

Weigh evidence and facts available and develop realistic contingency plan for coping with the situation

STOP BEING A PESSIMIST Examine your approach to explaining

events We should all be market optimists.

Not “Rose Colored” Optimists, but based on market reality

Avoid the blame gameNegative emotion is seldom helpful in

managing or dealing with difficult situations Permanence and pervasiveness are thinking

patterns that don’t work well in difficult situations

AVOID THINKING TRAPS Over generalization

View single temporary event as permanent state of affairs

Jumping to Conclusions Wait for all the facts before coming to a conclusion

Exaggeration or magnification Mountain out of a molehill

Minimization Discount the positive

Emotional Reasoning Assume the way we feel is the way things really

are Not being objective