Underestimating the Next Boom: Goldman Sachs Group, Inc. (GS)

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Any number of things could happen to throw that off. Europe could implode. Interest rates could spike. A war could erupt. There will be more recessions in the future — some of them will be big, and you won’t see most of them coming.

But as financial advisor Carl Richards once wrote: “We focus so much on protecting ourselves from negative surprises (job loss, disability, divorce, death … the whole catastrophe) that we forget to factor in the positive ones (a raise, a business that works out, a new career, a new bull market) that can sometimes change our entire outlook.”

Five years after the start of the last recession, I think people are still underestimating the odds of goods things happening. Worse, I don’t think most of them realize that underestimating those odds poses a threat to their wealth.

The article Underestimating the Next Boom originally appeared on Fool.com and is written by Morgan Housel.

Morgan Housel doesn’t own shares in any of the companies mentioned in this article. The Motley Fool recommends Goldman Sachs.

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