Words Matter

I am fascinated with the human mind, how we make decisions and what words we use when put on the spot.

How we can be extremely incredible at something, yet when in front of a large group of peers we can crash and burn in an instant. A new version of you shows up to give that presentation you've practiced 100 times, the version of you that seems like she hasn't practiced at all is suddenly on stage representing us.

However, this isn't about presenting or taking the big shot in front of a large crowd with the game on the line. It's about words and how they play on our decision making, the way they take over our bodies quite similarly without us even noticing.

If you listen to, watch, or pay attention to the News on TV, Radio, or Facebook at times you likely get a sense the world is almost over. We are one nuclear missile strike away from the end of civilization as we know it. Fear, all these are predicated on fear and to help keep us safe from the 21st century's version of the saber-toothed tiger.

In the financial world, we are constantly bombarded with the fear that markets are crashing, plummeting, or any other fearful word that you can come up with. That's what the news will tell you and I, we are to fear. When things are rising, the story isn't quite as dramatic. All sound judgement says to ignore market ups and downs by investing regularly, and to actually put more money in when the general sentiment is to run and hide.

Words activate our brains into protection mode, which then dictates our immediate response. If we've trained ourselves, we can take a second to process and rationalize longer term, knowing this will not harm us and we are able to look beyond it. Naturally though, we are often instantly in decision mode about what we've heard and that alter-ego steps on stage again to make the quick decision - the part of us that doesn't seem to have the recollection that we've prepared for this, we are smarter than this though.

Don't worry, it's a natural condition. Here is an example I heard recently of how it plays on our minds and how a simple use of words can affect how fearful we are of something.

How would you feel if you walked up to an elevator and instead of the options being 'Up or Down', the options were 'Soar or Plummet'?

Would you still be quick to get on, or would your natural reaction be to question the possibility of the Plummet?

What's the vision in your head? Is it one of an elevator crashing into the main floor (M) or the bottom parking garage (P5)? Or did your mind go to the possibility of Soaring like a bird to new surroundings, through the penthouse roof without a thought on where you would land?

If you are like most people, you would second guess getting on the elevator (at least instantly) and might opt for the stairs (keep your feet on something solid) for fear of the plummet option.

Let's dig in.

The word plummet is derived from the word plumb, which essentially means a vertical direction of up or down - a piece of lead attached to a string. In other words, a piece of lead that is safe and it will not crash down to the floor.

The word soar is defined as 'to ascend to a higher or more exalted level.' Wouldn't we all want to rise up to a state of more happiness (the penthouse suite) if there were no possibility to plummet into the ground.

Our brains are hardwired simply to protect from danger, keep the body safe enough to survive another day or simply get through another meal hunt without being eaten by a saber-toothed tiger. For the most part this means we (silly humans, 'monkey minds') are naturally attentive and aware of what potentially could harm us before we notice that which would move us forward.

In case you hadn't realized it, we no longer have to fear the saber-toothed tiger.

Airplanes are another great example.

It's general knowledge that we are more likely to die in a car crash than in a plane crash, but majority of people get much more of a sense of fear when boarding an airplane. Even jumping out of an airplane with a perfectly good parachute, and a backup, can create more fear than being face to face with a saber-toothed tiger. This should all seem ridiculous to us but it's not, we accept it as normal.

Is this because of those safety precautions at the beginning of a plane ride? The checklist of things to do if we went down. We don't take those steps or go through a checklist every time we get into a car, we simply buckle up and drive away. No premeditated run through of how to get out of the vehicle if we suddenly end up upside-down or in a lake.

So, the airline safety run through gets our minds into protection mode, fear sets in and we make rash decisions (some people even hyperventilate). The simple action of talking about crashing, the words themselves change who we are. This is what is fascinating about the human mind.

There are likely millions of examples of how altering words and adding words can completely change the direction we choose in life.

Next time you feel fear creep in, stop and rationalize if this is something you should actually be fearful of or are words and the environment making decisions for you.

Next time you hear about fear in markets, talk to an expert in the field who knows better and can rationalize what is happening as it often doesn't even have any effect on your unique situation and shouldn't be feared at all.