Coronavirus: Stock markets, Absolute and Arbitrary Worlds

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silmcoach
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Coronavirus: Stock markets, Absolute and Arbitrary Worlds

Post by silmcoach »

There can be no clearer example of the difference between arbitrary and absolute worlds, a central tenet of SILM® theory.

The coronavirus threat to human life and the economy is about the absolute being (physical organism) concerned for its health and well-being, and the arbitrary existence of the self in the World of money and stock markets.

This is why the markets are moving erratically, there is a right royal battle going on between the investor's physical response (emotions i.e. fear) and the arbitrary self that views wealth and its creation as king (power and control).

When things are going along nice and steady investors can take a reasoned approach to investing. There is time to think, weigh up the pros cons and invest wisely. Throw a nasty little virus into the mix and suddenly there's panic. But overnight the slower arbitrary self thinks, well it's not going to happen today, maybe we will beat the coronavirus. Perhaps I can hold my absolute nerve and the arbitrary world will overcome this temporary invasion by an absolute virus. [see Kahneman's "System 1/System 2" thinking in the SILM® Knowledge Base]

There are no boundaries for the coronavirus in the absolute (natural) world. Regardless of arbitrary political systems, religious belief, or social structure, the coronavirus is transmitted from one body to another the absolute natural world over.

With regards the financial markets, it's going to be interesting how this battle plays out. This morning, I think the arbitrary self is thinking, let's see how things play out over the next few days, no need to panic just yet, don't want to be left holding a load of cash when the markets have recovered.

Update 8:20: Note significant rise in U.S. markets last evening (GMT), more cautious in Europe this morning. Think that's about the stage of the coronavirus outbreaks on the respective continents. For once the U.S. is lagging behind Europe. Let's see how things pan out.

Politics is coming into play in the U.S. as any downturn in the economy makes Trump's reelection less of a certainty.
Update 10.0 a.m. European markets now falling significantly, effect of the U.S. market gains last evening wearing off I expect.
silmcoach
Greatest wealth - happy heart, peace of mind :D

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