There were a lot of historic market events that took place during 2022, and they brought us many learning opportunities, too.
Monday, 23 January 2023
Much of 2022 gave us market events that had a negative impact on performance - and created headlines focused on short-term market movements. However, long-term investors can learn a lot from the past 12 months, too. In this episode, we’ll review stats and facts with an eye to the future to help you make smart investment decisions in 2023 and beyond.
Seven Guidelines to Follow if You Want to Find Success in the Markets
By Kathy Longo, CFP®, CAP®, CDFA
Monday, 18 July 2022
Investing can be a smart way to save money for your future financial goals, yet many people lack tips for long-term investing success. What’s difficult about planning to achieve goals in the distant future is that it can be easy to get distracted by short-term goals or to lose motivation because the goal feels so far off. Investors who find success in the market do so because they tune out the short-term and, instead, focus on the long view of their financial plan – evaluating their money goals, income needs, and assessing the spending demands of their lifestyle.
As you look toward your own financial future, read on for a few basic investing principles that are helpful to follow for long-term investing success.
How Subconscious Human Behaviors Can Impact Your Investment Success
By Kathy Longo, CFP®, CAP®, CDFA
Wednesday, 06 July 2022
If you’ve ever heard of behavioral finance, you know there are some very human ways we can make mistakes in our financial decision-making – and researchers have been studying these unconscious impacts for a long time. How and why we make financial decisions is dependent on a matrix of information and insight, a complex equation that can factor into the success – or failure – of our investment portfolios.
Investor biases, a psychological occurrence in which an investor makes decisions based on preconceived ideas or beliefs, could potentially lead to investment mistakes.
Plan Ahead to Overcome Emotional Reactions that Can Skew Prudent Investment Strategy
By Kathy Longo, CFP®, CAP®, CDFA
Wednesday, 06 October 2021
I write a lot about the interconnectedness of money and emotions, and I also talk about it frequently on my Flourish Financially podcast. That’s because we humans are emotional creatures, and our feelings can have a tremendous impact on our behavior. Of course, that includes financial decision-making, which permeates many aspects of our lives. When it comes to investing, in particular, the natural highs and lows of the stock market can have emotional effects. If we’re not careful, these emotions can inhibit our ability to make sound financial judgments. In fact, many poor investment decisions have been made by investors who became too emotional and let their behavioral biases overrun their rational thoughts.
For this reason, it’s crucial to understand how emotion can interfere with your investment success. We all go through life with various ups and downs and hiccups along the way. This can cause fear and uncertainty – both fertile fields for emotional financial decision-making.
Below we will discuss three emotional biases that can wreak havoc on your investment strategy – if you let them.
By Jay Pluimer, AIF® CIMA®
Thursday, 12 November 2020
In this week’s episode, Director of Investments, Jay Pluimer discusses the benefits and drawbacks of Active vs. Passive Investing.
