Violence goes home

Tsang Shu-ki (8 March 2009)

When the world around one seems to be collapsing, and one has not been quite prepared for the sudden disaster, the reactions could be varied: (1) refusal to face the consequences and sticking it out; (2) using one’s remaining wealth to try to beat the market by going against it; (3) admitting defeat and signing off for a much less glamorous life; or (4) resorting to violence to ventilate one’s frustrations against convenient targets which happen to be nearby.

All four options are totally understandable from a human perspective; but none is recommended.

First, if you don’t think that the world is in a disaster mode, there is no need to read on. Just treat this piece of mine as trash. My guess is that you would take option (2) above. I wish you the best.

Second, if you agree that the global economy is in deep trouble, option (1) should be thrown out of the window unless you are so rich that you don’t care for the next 10 years. No further words from me.

Option (3) is a plausible one for more philosophically oriented people, with whom I have quite a lot of sympathy. Still, capitulation would not be my first choice. One should learn from history.

Option (4) is the least desirable: avoid it as much as one can.

My humble suggestion is a modification or extension of option (3): cut all losses on investments which were based on over-optimistic views, underpinned unnecessarily by one’s own ego (which could be huge), wait patiently for opportunities, and remember that nobody can fight against historical long wave once the downturn sets in. This is not a time for pride.

The greatest enemy for one, after all, is oneself. Don’t self-destruct.