Dollars & Sense Peter Watson Guest Contributor 31 | Thursday, March 10, 2016 | OAKVILLE BEAVER | www.insideHALTON.com SALES LES PERIOD | MARCH 10 -16, -16, 2016 TREATS LILIES PAINT A POT 10am - 4pm Sat. & Sun., March 12th & 13th Sat. & Sun., March 19th & 20th FREE at all TERRA locations call today to register! EASTER 6" Easter Human pessimism hurts performance of investments Kid Zone Workshop O 5 99 Reg. $7.99 ne of the most interesting aspects of investing is human nature. Understanding investments is dif cult. Understanding human behaviour often seems impossible. Many times, the weak link in the investment process is not the investments, it is human investors. There has been endless investment research that links poor investor decision-making as the main cause for nancial failure. Regardless of the mounds of evidence on the best way to invest, we humans continue to get it wrong much of the time. That might be because we tend to be more focused on dangers than opportunities. Daniel Kahneman won the Nobel Prize several years ago for his research showing that people have stronger negative feelings than positive. Investors are many times more unhappy with an investment decline than they are happy with the same amount of positive gain. Historian Deidre McCloskey told The New York Times recently, "For reasons I never understood, people like to hear that the world is going to hell." General investment conversation often gravitates to the many possible risks ahead that might cause investors to lose money. Yes, there is investment risk but it is unhealthy to focus on just the downside. Jeremy Siegel, the Wharton School of the University of Pennsylvania Russell E. Palmer professor of Finance, has made a career in studying stock market performance since the beginning of markets. His conclusion is that stocks are the safest asset class investment over the long term. Some people in the U.S. wonder if Siegel is too optimistic for being so enthusiastic about historic stock market returns. He has been preaching this since the 1980s and stock markets have continued to provide excellent long-term returns. You can bet against optimism, but evidence is not on your side. Since economic activity and stock market values started being recorded more than 200 years ago, the results have been solid growth. Yes, there are times when the market corrects itself. However, for two centuries, results have been positive. Harvard Business School Professor Teresa Amabile's research shows critics writing negative book reviews are seen as smarter than those writing positive reviews see Greater on p.35 6" Potted 14 $500 HYDRANGEA 99 Reg. $19.99 SAVE Styles Arriving Daily NEW Spring FASHION Choose from a great selection of active wear, travel wear and items for special occasions. $1000 Easter WREATHS Decorate your home with our timeless and tasteful Easter wreaths. While quantities last. SAVE European Inspired Festive ARRANGEMENTS Taking the ordinary and making it extraordinary! Starting from 3999 2999 All items while quantities last, subject to availability. Category offers exclude "TERRA Essentials". Reg. $49.99 Reg. $39.99 1499 www.terragreenhouses.com OPEN 7 DAYS/ WEEK Mon - Fri 10 am - 6 pm | Sat 9 am - 6 pm | Sun 10 am - 5 pm HAMILTON 340 Hwy 20 R.R. 1 East of Upper Centennial (905) 692-6900 BURLINGTON Hwy 5 East of Brant St. (905) 332-3222 MILTON Britannia Rd. West of Trafalgar (905) 876-4000 WATERDOWN Hwy 6 & 5th Concession East (905) 689-1999 VAUGHN Keele St. North of Kirby Side Rd. (905) 832-6955 www.facebook.com/YourTERRA/