| This is probably such a day as many others. Business | | | | car-insurance, is not really profitable? Especially |
| as usual. Nothing wrong, no alerts, you loose some, | | | | bankers that are carrying a portfolio of possible |
| you win some. You go with the flow and let your | | | | investments should know that the choice for this |
| profits grow.... Do not think that this jargon is for | | | | option excludes some other one. The first few banks |
| investment managers only; business management and | | | | will envision an opportunity and respond with greed |
| investment management is not that different.When | | | | to new earnings, where a few others fear to be left |
| you are in the business arena you know that you | | | | behind and join the team - after all.This is only one |
| have to follow the market. You watch the | | | | (recent) example of fear and greed, but there are |
| competition, you check the trends and you respond | | | | examples to be found on a daily basis. Besides the |
| to other incidents that you are involved in. Until that | | | | example of the old versus new economy just check |
| special moment.It starts with rumors, than it's the | | | | in your organization where you hear about the |
| talk of the town. And then it appears; a new trend. | | | | following arguments: |
| Nearly invisible at first, a big monster a few moments | | | | "If we don't follow we will be left behind (you can |
| later. Then people will ask you; what are we going to | | | | hear the child say 'me too') or "if we take this step |
| do?From the investment market we know that the | | | | we are the first and the profits will follow forever."If |
| market behavior is powered by fear and greed. | | | | you are aware however of the fact that each |
| When the oil price is rising, we fear that it will not | | | | person and company is unique you can benefit from |
| lower again, when the US dollar is under pressure it | | | | this by selecting those investments or decisions |
| will never go up (a European worry) and if the stock | | | | where they fit with your (personal) or organizational |
| market plunges it will not recover for years. | | | | profile. If you can trust on the success that your |
| Closer to the truth is that any movement will have | | | | company harvested in the past, you should be |
| its counterpart. The question is timing. When you are | | | | confident to continue the same line for the future. |
| familiar with investments you probably know that | | | | If you want to outperform with your team, you |
| you should not try to time the market. Yet does this | | | | should stay alert for the fear and greed around |
| mean that you should always go with the flow? You | | | | you.© 2005 Hans Bool / Astor WhiteHans Bool |
| cannot (always) stop the flow. But you could try to | | | | (The Netherlands) is the founder of Astor White a |
| make a few changes especially when you feel that | | | | consulting company dedicated to (the human side of) |
| something is wrong.Take the following heading of a | | | | management consulting and e-advice. He has many |
| recent article: "bankers enter car-insurance market in | | | | years of experience in (project) management, |
| order to provide a global service" (a free translation | | | | consulting and business architecture. He studied |
| of the Spanish heading in the business paper | | | | economics and has recently published the book: "How |
| 'Expansion'). Why do all of a sudden a group of | | | | to manage your organizational portfolio - just stick to |
| bankers enter into this service, where we know that | | | | your rules". |