Sunday, September 5, 2010

The Risk Premium of Risk Lovers

We sometimes worry too much about what to do with love… But behind all these worries we always dream of a life of security and stability with someone we care. But that dream is always faced with hurdles that are self inflicted. Your uncertainty on who you are and which path to take are weights and liabilities you have to carry.

Loving is risking. Because in love you risk yourself to uncertainty of the future over a life of clear demarcations and yes, even complacency and comfort. Upon deciding to take on a path of love, you are already creating a trade-off between a future with someone who might just betray or play on you over a life where you are the only one that should matter. You will let go of your comfort zone to give way to a possible great detour ahead with someone you love. This is the risk premium of loving. For starters, risk premium is the difference of the decisions you made to take on something (i.e. stocks) which are highly uncertain and volatile over something that is clear and well defined and without too much movement with the expectation of greater returns.

Like I promised in the previous post, I’ll discuss risk aversion in more detail. Most likely those who seek for higher risk premium are those who are risk seeker. Generally speaking, they are the adventurous type of person. They have higher tendencies to try new things. These are the people who in my opinion have endured and experienced a lot to keep on risking. In searching for someone to love, they are usually the kind of person to defy norms and stereotypes. These are the people who look for someone with unique characteristics that will give him/her the sense of mutual exclusivity. And that exclusivity is the premium on taking the risk on maybe having relationships. In love, we don’t see risk premium just only in its monetary value. The risk premium sometimes forego a life of sure luxury over a life wandering since the satisfaction the person is looking for, is a life that isn’t static. Could it be the right decision? We can say that for the average people no, because normally she should have chosen wealth. But we have to understand that it is in their nature to be nonconformist and unconventional.

Culture, Language, Geography, Age, Gender, and Wealth will set no boundaries for their love to see each other. We can say that they are the Romeo and Juliet of modern times. But at the downside, their love can be fatalistic and may lead to their own peril. Their love may also bring troubles to their loved ones like the love of Helen and Paris. But what else can we ask for, these are people willingly took this path for love. It may be right or not, because sometimes in love, we just have to follow our instinct.

No comments:

Post a Comment