Wondering whether it is possible to safely invest in stocks, commodities, or whatever asset class one may be examining is tough for pro and amateur alike. Facebook is a classic example of investors so desperately wanting to believe they had an opportunity to enter an almost riskless trade because they were certain of " This Equals That" or what I call the TET reflex.
One could say TET is what we rely on every day to assess problems, observations, and opportunities. Facebook's automatic TET reflex glided through home, office, and financial industry circles with an absolute impatience for the normal processes involved in IPOs. But alas, the Facebook IPO bombed for everyone except the dweebs who were already made.
Here were the three normal phases of the TET reflexes for Facebook investors and all investors for that matter.
Phase 1. This is the big one.
Wealth now or die.
Phase 2. Why isn't this working.
This starts when you realize maybe you've been hosed and red marks start appearing on your face, reflecting from the computer screen as you watch your investment go negative.
Phase 3. It's someone else's fault.
This final phase occurs when all hope is lost for the quick score and you begin to organize lists of the responsible. You are not on that list.
There is a reason you are stupid. It is is rooted in the belief there are growing opportunities in a de-leveraging world. There are not.
Key lesson here.
You better already own it early and be prepared to wait a long time to be successful.
