Set forth below is the text of a comment that I recently put to the Goon Central board:
GW asks why it takes COURAGE to send e-mails when there is “nothing to lose.”It takes courage because we humans are social beings. We do not like to be outcasts. We do not like to have people hate us. We do not like to have people yell at us. We want people to approve of us. We want people to like us. We want to see comments on our blogs. We want links to our sites. We want people hiring us. All these sorts of things.
When stocks are overpriced by $12 trillion, the person who reports honestly what the academic research says is telling people that $12 trillion of their wealth is going to disappear over the next 10 years.
How do you think people react to that message?
They hate it. They hate it with a burning hate.
So people generally don’t say these things.
That helps them sell. It does not help anyone invest.
It takes COURAGE to give good investment advice. Because giving good investment advice is taking fantasy dollars out of people’s pockets.
The risk of stock investing is that you will come to believe that the fantasy dollars are real. Those who come to understand how important it is not to believe in the fantasy dollars thereby come close to eliminating risk from the stock investing project. The risk of stock investing lies in the human inclination to believe in GRQ/BH fantasies of Pretend Wealth.