We consume.
Sustenance. Resources. Ideas. Emotions.
Each other.
Ourselves.
We consume. We are ravenous.
Consumption is the engine that powers human experience. Consumers drive 70% of the U.S. economy; they are essential, they are indispensable. Never forgot, however, that investment creates jobs. Consumers lubricate the economy. They do not provide infrastructure; investors do. Understanding the psychology which fuels our intricate ecosystems of consumption is critical not only for a financial professional’s success—but also for his sanity.
Consumption—or lack thereof—happens for very specific reasons. Drill down deep enough and you will see that market data is essentially research on consumption patterns, which is ultimately driven by human behavior. Therefore, understanding the psychology of consumption and the ways in which perceptions of consumption are disseminated and manipulated will make the financial professional more sophisticated in many ways. This knowledge base will sharpen his understanding about how business and money work.
There is much more to market dynamics than the law of Supply and Demand. When you gain an ability to analyze and interpret data through the lens of psychology, you start to steal glances at the hidden agendas of information sources, whether these are governments, ratings agencies, individuals, public relations officers, corporate cabals, or any other industry machination.
To consume, or to be consumed?
That is the question.