Wheelan has started the chapter talking about a diet, which at first looked pleasing, as he said, why would a diet based on eating ice cream not be? Although, these women that got driven away by this sensational diet, were smart, their poor understanding of economics was easily fooled and controled.
I considered financial market as a complex process, but throughout the chapter, Wheelan introduced us to few simple needs that the whole market is based on. Wheelan says, "we can spend large sums of money that don`t belong to us" (150). I was aware of this, but he has set it to the right place and this isn`t accurate only for America, believe me, everybody wants a new car without paying for it right away. Moreover, through everything we do in our life, we position ourselves in risky situations, endangering our lives, property. For example, by taking a bath, more importantly, experiencing a natural disaster, illness, etc. For sure, we want to minimize this risk, and financial market helps us fulfill our wants. "most of us are willing to pay a predictable amount-even one that is more than we expect to get back-in order to protect ourselves against the unpredictable" (153). We naturally think about the worst option that could happen, that`s why we are willing to pay more to the insurance. In the end, Wheelan says to take risks, "the more risky your portfolio, the higher your return-on average" (169).
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