On February 29 (Leap Day), 1504, Christopher Columbus used a lunar eclipse to manipulate Jamaican natives into providing supplies.
During his fourth and final voyage to the New World (1502–1504), Christopher Columbus and his crew found themselves stranded on the northern coast of Jamaica after their ships became too damaged to continue. Initially, the indigenous Taíno people provided them with food and supplies, but after many months, tensions grew as Columbus’s men began stealing from and mistreating the locals. Faced with starvation and desperation, Columbus devised a plan to regain the favor of the Taíno by using his knowledge of astronomy. Consulting an almanac by German astronomer Johannes Müller (Regiomontanus), Columbus learned that a lunar eclipse was expected on the night of February 29, 1504. He called a meeting with the Taíno leaders and, with theatrical flair, warned them that his Christian god was angry at their refusal to continue helping the Spaniards. He claimed the moon would soon disappear and turn red as a sign of divine wrath. The frightened Taíno believed Columbus had supernatural powers when the eclipse occurred as predicted. They begged for mercy and quickly resumed providing supplies. To maintain the illusion, Columbus timed the reappearance of the moon by pretending to pray and announcing that his god had forgiven them. This clever manipulation allowed Columbus and his crew to survive until they were rescued months later. The incident remains one of history’s most famous examples of using scientific knowledge to control a situation.
Here are five investment lessons for the modern investor from Columbus’s use (or misuse) of the lunar eclipse:
🌓1. Knowledge is (Limited) Power
Columbus succeeded because he had better information than the people around him. Similarly, in investing, those who stay informed and tune out the noise gain an advantage. Understanding macroeconomics and basic investing can help you make smarter decisions. However, it is more important to understand the biases and shortcuts our brain uses every day. Columbus, who thought until the end of his life that he was near Japan while in the West Indies, was a striking example of confirmation bias, anchoring bias, and other flawed thinking patterns. Wherever you go and whatever you explore, think about how you think before using any knowledge you’ve gained.
🌓2. Timing Matters
Columbus used precise timing to maximize his influence over the Taíno people. In investing, knowing when to buy, sell, or hold is crucial. For instance, avoiding panic selling can mitigate risks and maximize gains if you follow the first lesson and know how your brain does or doesn’t react to the stress of a market downturn.
🌓3. Leverage Existing Resources
Columbus didn’t create the eclipse—he simply used existing astronomical knowledge to his advantage. Investors should take a similar approach by leveraging available tools like data analytics and expert insights rather than trying to predict the market blindly. That is a voyage that, more often than not, ends up going nowhere.
🌓4. Confidence and Narrative Matter
Columbus’s authority came from how he framed the story, not just the event itself. Confidence and conviction—backed by solid research—are essential in investing. Investors who stick to a clear strategy rather than reacting emotionally to market fluctuations tend to perform better over time. So, know your story. If you don't, find someone like me to help you co-author it.
🌓5. Survival Often Counts on Understanding the Cycles
Just as Columbus anticipated the lunar cycle to time his actions perfectly, savvy investors recognize that markets move in cycles—booms, busts, recoveries, and expansions. Instead of fearing downturns, successful investors Understand economic cycles, industry trends, and seasonal fluctuations happen all the time. This should give a sense of calm during rough seas and keep you from reacting emotionally to stormy markets. Otherwise, it may be you who ends up begging for mercy.
History Lessons for the Modern Investor | Economic Trends & Market Insights Explore the past to make sense of the present! This playlist breaks down key historical events and their impact on today’s financial markets. From understanding inflation and interest rates to analyzing the 10-year Treasury yield, we connect the dots between history and modern investing. Learn how figures like Elon Musk influence the economy, what past trends say about today’s economic calendar, and even answer questions like "Where is my tax refund?" and how tax refunds affect consumer spending. Stay ahead of the curve by using history as your guide to smarter investing! 🚀📈
This episode is sponsored by Victory Independent Planning. Ready to take the stress out of your retirement? At Victory Independent Planning, we put you on the right trajectory with our exclusive VIP Retirement Glidepath™️! Schedule an assessment now: https://freebusy.io/victoryindependentplanning-VIP-Booking/phone-consultation 🎯Patrick Huey is a small business owner and the author of three books on history and finance as well as the highly-rated recently-released fictional work Hell: A Novel. As owner of Victory Independent Planning, LLC, Patrick works with families and non-profit organizations. He is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Advisor in Philanthropy® and an Accredited Tax Preparer. He earned a Bachelor’s degree in History from the University of Pittsburgh, and a Master of Business Administration from Arizona State University. Patrick previously served as a Naval Flight Officer from 1996-2005, earning the Strike Fighter Air Medal during combat operations and two Navy Achievement Medals. 👉🏻 Reach him at 877-234-8957 or schedule a time to talk using this link:
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