Monday, November 8, 2010

On Risking Happiness

"Don't put all your eggs in one basket"

It seems simple enough. This is the main idea behind portfolio diversification theory stating people who invest money into financial markets should diversify their portfolio in as many different markets as possible such as foreign stock exchanges. Anyways today I was wondering if we as human beings do this with our own happiness. We emotionally invest ourselves in different things to spread out the risk of being unsatisfied and unhappy with the outcomes that life hands us. Though sometimes it seems difficult not to invest heavily in certain things such as close friendships and romances after all we cannot always control how we feel. Furthermore stock portfolios tend to have a home nation bias and people do tend to tie up their happiness in close friendships, family, romances, and their jobs. I wonder if it could make one subjectively happier to invest in multiple sources of happiness as opposed to fully investing in one form. I mean payouts are different for each form but so are costs and risks. I seriously considering trying to turn this into an Economics or Psychology Honors thesis but unfortunately as of now these are just observations and speculations into the world and not anything substantial in either field at the moment.

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