Flex

Very interesting post and some very valid thought provoking ideas. I also think that the reason comes down to another two factors which make up the human thought process. GREED and SELF PRESERVATION. Day to day flight operations still provide a limited window in which to operate with hopefully a known outcome at the end of it, that is, a aircraft parked at the gate and the crew having a beer in the pub. We know that by the time we get to the gate at the destination that the acft wont have got any bigger and the cabin crew wont look any hotter. So because we know the the eventual outcome (as you said "it returns to zero") the main name of the game is follow the rules and make judgement that will keep us alive and also our job.

Sound investment does not necessarily mean greed however I think we are all drawn in a way to the unknown and our eyes get wider thinking about how much money we could make in an investment instead of setting a target and changing it if its not working (like the day job). Greed becomes the governing factor when you are presented with a investment that you know is too good to be true but because the returns look great on paper its all systems go.

So if cash is king, bearing in mind this could be an asset based downturn with cash becoming basically worthless, how many here who own an apt in HKG are selling?

My guess is not many.

GREED makes us over-commit and accept risk that is way too high in an bull market.

GREED causes us to lose our shirt when the bubble bursts if we have borrowed to buy shares.

FEAR causes us to realize our losses when we sell our shares in a fast falling market.

FEAR prevents us from buying cheap and low risk shares in a market that has crashed, and therefore we miss out on the upturn.