Espresso Chat with Henna: Your heart, the dictator.

“Wealth is not determined by investment performance, but by investor behavior.”- Nick Murray.

It was September 2018 when the downfall first started reflecting on peoples statements last year. You probably know about it, and if you're the majority, you were probably confused and worried - and if this wasn't your first rodeo, you must have put down the statement and went on with your day- without a concern.

There are two types of people when shi*t hits the fan. Those that try and "get out" and those that ride the tide knowing what comes up must come down and vice versa.

It's a simple strategy but so difficult to stay on track. Why? Because we're humans. Emotions and vulnerabilities all make up the walking-talking intellectual beings that we are. We are emotional creatures that define our existence with what we have at the very moment. Because without realizing it, we either live in the past or we live in the present. And when it comes to investing, that is a big no-no.

Why? Let me explain.

IF September 2018 could speak to you, this is what she would've said:

I am here to stay temporarily. I need to come down because it's law of nature. I am unable to sustain such highs for such a long period of time, but if you have been diversified accordingly and you're not 100% in one type of industry, geographical location or asset class, then YOU WILL BE FINE. But I must come down, and I promise, when nature calls me again, I will begin to rise. Like any other 5 year business cycle. I AM NOT HERE TO STAY.

Every time you decide to give in to your emotions and call OUT, you are losing your money to the simple law of nature. Do you ever buy a house at $500,000 and sell at $250,000? The only time you lose, is when you sell at the wrong time. If you wait it out, that $500,000 dollar house could break even or even give you a profit.

Allowing your emotions to dictate your financial decisions, is called being vulnerable and you're bound to ruin a perfectly good plan created for you. So what should you do instead? Recognize you're giving in, and look to your advisor for some pep talk. And when that is over, clap at your vulnerabilities, because, come on, "You've overruled the dictatorship of your emotions and have finally chosen the path of mindful investing."

Take care of yourself.