Emotions of Investing
Kevin M. Arquette, CFP?
With over 22+ years of expertise, I specialize in guiding high-income professionals towards lasting financial security while ensuring they maintain their desired lifestyle, even in the face of market volatility.
Presented by Kevin M. Arquette, CFP?
Logic and emotion have never been a perfect pairing. It is logical for investors to stay focused on their long?term goals during volatile markets, but emotionally it is very difficult to follow this reasoning.
Emotional instincts, which may be valuable in certain aspects of our lives, may contradict sound investment decisions. The image below depicts the emotional cycle relative to market changes.
When the market is doing well, investors are excited, even blissful. This can be the riskiest time to invest, however, because it may foster a “can’t lose” attitude that strays from a disciplined investment approach. During these times, it’s important to review and rebalance as appropriate and stay focused on long?term investment goals.
When the market is low, investors often feel defeated. Although the market may be down, buying at this time can offer investors a great opportunity to make money. We all know the old adage that investors should buy low and sell high, yet few investors take advantage of down markets in this way. If it makes sense for your risk tolerance and goals, we may take advantage of market downturns.
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer
10220 US Highway 19 | Suite A, 4th Floor | Port Richey, FL 34668
813.255.2546 | www.wealthpointplanning.com | [email protected]
Advisory services offered through Commonwealth Financial Network?, a Registered Investment Adviser.
? 2023 Commonwealth Financial Network?