Now that was a fine week for stocks across the globe and I dare say the world is now suddenly in a better mood. In a way, it’s sad how happiness or sadness is so clearly a function of the strength or weakness in the Dow Jones index. With the unbridled joy of a small child, I heard so many saying things like, “I just know this is the bottom, thank God”. Or “whew, I’m glad that’s behind us”. Maybe that assessment is correct, maybe not – sorry I’m not going to speculate on that topic as much as you might want me to. The change in investor psychology is now radically different than the days of overt and shameless panic less than 10 days ago when many many household – including some of our own clients, did the wholesale cash out thing that I have been warning against for the last 3 weeks. I want to spend this update talking a bit of theory, specifically about why we should all try to keep some investments on the table at all times while managing risk as best we can. The theory is based on solid academic work as well as some of my own observations regarding our most formidable foe – our minds.