I think a lot of people don't realize that investing is a problem that's been solved. We know what the average returns are for equity, for fixed income. We know what inflation looks like over the long haul. We know what the economy broadly does, what the range looks like. The variable, the wild card, that we haven't yet solved for is our own behavior.
Emotions evolved through natural selection as a way to get humans to avoid things that would threaten their survival and approach things that would serve them. Fear prompts us to defend ourselves. Love motivates us to connect, nurture, and cooperate. Anger arises when something threatens our values or boundaries. In essence, emotions condense our judgment about what's happening around us, driving us to make the "right" decision for survival and adaptation.
Sadly, there are signs that racism is increasing across the world. Research from Europe and Australia in recent years has found a rise in the number of people experiencing racism. Reports from the U.S. and U.K. have indicated that most ethnic minority participants felt racism was getting worse. And a global study has found rising incidents of discrimination. Animosity toward those who appear different to us seems easy to arouse, especially in times of hardship and upheaval.
Part of the answer comes from optics. Violet light has the shortest wavelength on the spectrum of visible light, right next to the unseen ultraviolet, which only our skin detects. With its short wavelength and high frequency, the color purple contains the highest energy of all visible light. Figuratively, we can think of purple as the border between the visible and the invisible.
According to psychologists, it's a phenomenon called 'mate choice copying' and it's something that's developed throughout human evolution, meaning people don't just randomly choose to break up happy couples. Multiple studies have observed how people and animals, such as fish, birds, and primates, seem more desirable to others when they've already been chosen by a mate. Women were more likely to experience mate choice copying because of the evolutionary pressures of mate selection and the drive to have children.
This perplexed my colleague but made eminent sense to me. In evolutionary terms, think of our ancestral hunter-gatherers. Males hunting that woolly mammoth had to have incredible, one-pointed mindful awareness, no distractions. Otherwise, they'd more likely be dinner than kill dinner. These males, excellent at combat, hunting, and present-moment awareness, were more likely to survive and procreate (à la Darwin), leading to more men proficient at mindful, present-moment awareness.
Why do we care about who we are? After all, as I argue in my latest book, there's not much we can do about it. No matter how much we try to modify our behaviors and habits, and whether we succeed, we will still inevitably end up being us, even if that comes with the capacity to feel that we are not being ourselves, that we are changing, or becoming a better version of ourselves.
The difficulties we encounter are frequently the result of self-sabotage, and managing them often requires wrestling with our own drives, doing our best not to give in to every impulse. This is easier said than done, of course. To lose weight and keep it off, to successfully climb out of debt, to find meaningful work, to maintain long-term, happy relationships: all demand postponing our immediate desires in the service of a longer-term goal.
Trust isn't just good manners or playing nice. It's something we live on, whether we realize it or not. We use it every time we open up to someone, every time we take a chance that they'll show up, follow through, or just treat us right.
