Investing: Simple, Not Easy
The basic principal to successful investing is "buy low, sell high". So why do investors panic when the market dips and stocks go "on sale"? Our investing decisions tend to be influenced by the illusion of certainty and control. Don't be tempted to abandon your plan. Learn more here.
Volatility is natural in the markets. 2017 saw very low volatility, but we've already seen some wide swings so far in 2018. Watch here to see how to mentally prepare for a potential year of greater volatility.
As flu season approaches, you need to be aware of viral contagion. Investors need to be aware of psychological contagions. Learn how to avoid the carriers and take the correct precautions here.
Our brains detest uncertainty. Our subconcious seeks out certainty. Find out what we do to give ourselves an illusion of certainty.
When it comes to investing, we often rely on the past. With this hindsight, past events become almost obvious, and we think "how could we have missed that opportunity?" or "why didn't I see to get out before things went south?". Our brain is then tricked into thinking the future is more predictable than it is, which is why performance disclaimers state "past performance is not indicative of future results." Find out the best solution to not having regrets from hindsight.
Frequency of Volatility:
Is the market more volatile today than in the past or do we just perceive it that way? Learn more about market volatility and why our perception of it has changed over time.
The Importance of Diversification:
We've all heard the phrase "Don't put all of your eggs in one basket." That is the basic principal of diversification, speading your money across multiple asset classes. But are you as diversificed as you think? Learn more about this important concept here.
Headlines & How They Influence Our Investment Decisions:
The media's goal is to grab our attention with shocking headlines. They often sensationalize the news, creating headlines that will elicit strong emotions. Learn more here about how to look beyond the headlines and maintain a long-term perspective.
People love to jump to conclusions. But for important decisions, we should ask questions and not take information at face value. Be sure to consult with your financial advisor to make sure you have thought things through before making changes.
What makes a hero? It is more about choices and behaviors than about winning or losing. This is especially true when it comes to investing. Find out why here.
A consensus is when a group of financial experts do significant analysis on the market and the commonalities in their individual forecasts are highlighted. Did they get it right for 2017? No quite. How about 2018? We'll see. Bottom line is you should remember to rely on your plan.
Complacency is a quiet pleasure or feeling of security, which many are feeling with the market right now. But how will you be prepared for or respond for potential market volatily down the road?
Each new year, we tend to make new year's resolutions to improve our personal health, finances or relationships. So why is it so hard to keep those resolutions. It all comes down to habits. It is difficult to change engrained habits. So what can you do to change those habits? Find out here.
The Default Response:
This is the response that comes naturally to you. What is your first response to investing and market changes? Do you tune into the news & media? Look to experts for guidance? Learn more about how your default response to investing can impact your portfolio performance and return.
All indices are unmanaged and investors cannot actually invest directly into an index. Unlike investments, indices do not incur management fees, charges, or expenses. Past performance does not guarantee future results.
Drivers of Emotions:
Market cycles can create strong emotional reactions, impacting our decisions & reasoning. Learn here about how our brains work during these times and how to avoid making snap investment decisions that can undermine your long-term plan.
The Perception of Loss:
There are two types of loss: temporary & permanent. Temporary loss is common in markets; it is natural & expected. It even creates opportunities to "buy low." Permanent loss is the one to be wary of. Learn how you can control if you will experience a temporary or permanent loss here.