Our feelings about the stock market are heavily influenced by the investments we already own, a phenomenon known as "anchoring." Many of us also suffer from "recency" bias, the tendency to read too much into short-term market performance.
Imagine trusting your life savings to an investment professional who can't articulate a scientific basis for her recommendations. Are you really supposed to rely on some ill-defined "art" and hope for the best?
I've watched many people get in trouble with upside down car loans, second mortgages or high interest rate financing. Credit keeps many people from living within their means. Then a friend told me he was buying a large house.