Where are the best opportunities in the financial market?

For investors emotions are the biggest threat when things are going great, we think we have the Midas touch, if things aren’t going so well, we tend to panic and take drastic action. Because emotions can be such a threat to investors, we must be aware of them, this awareness will protect you from making impulsive and emotional driven decisions.

At the top of the cycle is when investors experience euphoria. But it is here where investors are at the point of maximum financial risk. When things go well, we tend to get complacent, the second stage of the cycle when the market starts to turn, we go into denial, fear and panic, we tend to think about switching asset classes or making rash decisions.

The last part of the cycle presents the maximum opportunity for investors who find themselves in the right position/frame of mind.

Emotions turn rational investors into irrational investors. So it is important to remember that markets move and investments will always go in and out of favour.

To navigate this roller coaster of emotions your Financial advisor if your best friend, they can help you separate fact from fiction and stick to your long-term financial plan.

Do your emotions rule your decisions?

#financialmarkets #emotions #investing