Have you ever felt a thrill from purchasing a new investment? You begin with high hopes for the future, but as time draws on, the peaks and valleys that your investment undergoes as a result of normal market movements make you uncomfortable. Occasionally, your discomfort leads you to sell you investment simply to regain a sense of control. If the situation sounds familiar, you are not alone. Many investors let their emotions guide their investment decisions. However, emotional investing may influence us to buy and sell at inopportune times and eventually lose faith in our own financial decisions.
Break the cycle and consider investing for the long term.
Source: Westcore Funds Denver Investment Advisors LLC, 1998
Market Fluctuations in History
Do you hesitate when it comes to investing in the market? Like many others, you may feel that “the time is not right” to invest. Perhaps you find the economy too unsettling or feel that current events suggest you should invest at a later time when things “even out”, “settle down” or are more predictable. Despite our emotions regarding the market, when we look through a historical lens, we can see that the markets have traditionally rebounded from negative factors impacting their performance, and eventually surpassed their previous highs.
