Blind Spots

The insurance industry is a cruel one. Many individuals out there will ghost you when you approach them and that is an undeniable fact. Even the best people suited for the job will be turned away by the majority. Yet, at the same time, it also brings me comfort to know that there are some who truly care for their own future wellbeing that has yet to be earned. But, it seems that there are reasons to such a stark difference in the type of response.

The interesting thought process that we humans have often intrigues me to find out more. When I ask individuals what they think is the risk of contracting a bout of critical illness during their lifetimes, they can easily reply with "confirm sure get, if not how people die?" or "33-50%". The truth of the matter, the rate is high.

However, when asked if they should act now to protect their unearned income in case of a mishap, they are quick to dismiss that thought. Individuals think that illnesses won't befall them. On the other hand, individuals with pre-existing conditions or a family history of cancer/disability would be zealous to get coverage for themselves, even if it comes at an increased price or exclusions.

Do we often get startled and rattled by big sudden changes in the view in front of us? That is because we are able to see it directly in front of us. Should a flowerpot drop right in front of our faces, our hearts will flutter for the wrong reason. Same thing if it was a snake, a dog, or even a spider. We sense danger.

But, if these appearances are made at the background or at our blind spots, we are not cognisant of the threat. We will never think such occurrences will happen to us. Just like how we are unaware of people behind us and walk so slowly while blocking others or even a 'friend' who backstabs you. That's also why you must consistently check for your blind spots while driving and have it done so many times until it becomes ingrained into your subconscious!

There are 3 groups of people:

1. Those who don't think that there is danger at all, and they are invincible.

2. Those who think that there is danger, but it would not befall on them.

3. Those who knows that danger may any time approach them, and they are always on the lookout.

It is of utmost difficulty to reconstruct the view of the first group - it takes a calamitous event to waver that thought. But the ones who know the presence of danger but do not take action early despite knowing the risks are akin to not checking one's blind spots while driving. Sounds dangerous, isn't it? And would you as a family member or a friend dare to sit in this individual's car? Similarly, in the area of the lack of wealth protection, should anything befall him or her, you may be the one whom he or she may approach for assistance to clear the bills.

The recent stock market has also taken a deep dive. The crypto market and long-term call options have taken a plunge right into the trenches and abyss. The blind spots of investing into seemingly high performing assets are far too many and it has caused massive regret amongst fervent believers of "beating the market" through alternate means. Yeah, they have been receiving a beating instead.

When the market is on full acceleration upwards, we often forget to look out for gaping holes in the fundamentals of what we are investing in. Similar to how the Titanic sunk, it is all because of overconfidence and the ignoring of blind spots. It is only when we see the sinking of the market right now that we are able to notice the flaws in our original assumptions. Thankfully, it’s not too late nor too catastrophic – the market can recover. However, it is still important to know what assets or geographies to place into. There are many great geographies that are left undiscovered, and they exist as our blind spots too.

If you're interested to chat on this topic or to exchange ideas, please feel free to drop me a message on Telegram @elijah2212, LinkedIn, or through email elijah.thj@gmail.com!

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