Decisions, Decisions, Decisions (Part 3)

What resources do we need to improve our decisions?

Source: usafacts

We all use facts to make our decisions. We also act on what we know – of ourselves and of the situation. We can look into a problem and we can seek help. Where we look and who we turn to are both resources.

Encyclopedic resources are straightforward and easily accessible. They present humanity’s collective knowledge about a subject. They might answer a question like what symptoms are linked to a disease or the financial performance of a company at the end of a quarter. You might conclude that you have the disease or that you should buy that stock, but the resource itself cannot tell you that.

For confirmation, we turn to a personal resource, someone we trust to use encyclopedic knowledge to help us out. Personal resources also provide support, whether it’s your doctor working with you on a treatment or an organization that sends someone to sit with you while you are alone.

The rise of the internet and the explosion of resources has altered the landscape of decision making. There are so many resources now that we have changed the way we interact with them. Americans used to say they got their information through a specific method: television, newspaper, radio, internet. Now, they are more likely to name a specific source which is accessed across multiple methods: The New York Times, Fox News, Buzzfeed. The pendulum has swung from gathering information to trusting the source to tell you what you need to know.

To be fair, the element of trust has always played a role in using resources. Whether it’s a person, book, or organization, at the end of the day we trust to some extent what is presented before us. We trust that our doctor’s education was rigorous and that they keep up with developments. We trust that the stock quotes reflect the actions in the market that day.

But as Mrs. Weasley admonishes her daughter at the end of Harry Potter and the Chamber of Secrets, “never trust anything that can think for itself if you can’t see where it keeps its brain.” The same can be said of anything with a collective brain.

Veronica Peterson

By | 2017-07-17T12:21:21+00:00 April 24th, 2017|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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