How we are feeling can affect so many aspects of our lives. With additional pressure from global market changes, some investors could make unwise decisions. We are all on a bumpy behavioural journey…
Most of us think that we make sensible decisions. We analyse, consider, plan and then act. That’s the logical way to approach most things in life – especially investments.
However, we all make decisions on the go. Things happen in real time and we are forced to respond accordingly.
Are you aware that behaviour can impact on financial goals?
When emotions creep into the decision-making process choices can be made that will later be regretted.
There is a cycle of behavioural responses that we all follow at times. Some of us listen to our heart, some pause for thought, and others manage to put the breaks on before hasty decisions are made.
Let’s face it, it’s easy to panic. When markets are falling there is a tendency to sell, to bail out and cut losses. Too often that damages the long-term opportunities to grow, ultimately affecting the overall portfolio.
Conversely, when markets are buoyant people don’t want to miss out. They buy in, but often when prices are high and there is little room for growth.
Take a look at this behavioural journey graph HERE.
Involving an independent financial adviser can help you avoid many of the emotional reactions that go together with market turbulence.
Please be aware the value of investments or income from them can fall as well as rise. We’re here to help you make informed decisions as you put important things in place for you and your family.
Call us on 0808 1234 321 or email firstname.lastname@example.org to discuss any aspects of wealth planning, risk and investing during uncertain times.
* Logic Wealth Planning provides independent financial advice in Manchester, Bury, Rochdale, Cheshire and the surrounding area, but not limited to the region.