Behavioral Finance Video: Danger: Headlines Ahead Mark Twain said, “Never let the truth get in the way of a good story.”  It might be more applicable today if he said, “Never let the truth get in the way of a good headline.”   Headline Characteristics The purpose of headlines is just to get you to…

Behavioral Finance Video: CLIMBING THE WALL OF WORRY Climbing the wall of worry is the tendency for markets to rise despite always have something to worry about. And 2023 is no exception. 2023 “Worries” Media headlines today boldly announce companies making layoffs. But news about job openings seldom makes headlines. While recently we have been…

Behavioral Finance Video: 3 INVESTMENT LESSONS FROM 2022 1st Lesson – Surprises Happen In 2022, we were surprised by the Russian invasion of Ukraine. We also experienced record high gas prices. In response to persistent inflation, the Fed increased interest rates significantly. This resulted in mortgage rates doubling and both stocks and bonds experienced double-digit…

Behavioral Finance Video: BORING IS BEAUTIFUL Over the past few years, many investments have been hyped by the financial media and several have experienced near-parabolic gains. These include meme stocks, cryptocurrencies, major technology firms, and companies that thrived from changes during the pandemic. Hype and watching asset prices skyrocket produce a “get rich quick” mentality….

Behavioral Finance Video: PRAGMATIC PERSPECTIVES Year-to-date, the stock market is down 18%. Bonds are down 15% and the supposed inflation-fighting asset class of gold is down 10%. Many financial experts are pontificating where inflation and the markets will go from here. But market forecasts are seldom accurate. At the beginning of the year several well-known…

Behavioral Finance Video by Jay Mooreland, MS, CFP® INVESTING IN A BEAR MARKET Investing in bear markets can be scary.  Anxiety, concern, and fear are normal to feel. Negative outlooks often accompany bear markets, such as increasing inflation, interest rates, and possibility of a recession. Investors may be tempted to sell their investments and transform…

Behavioral Finance Video by Jay Mooreland, MS, CFP® THE VIRTUE OF STRATEGIC IGNORANCE Strategic ignorance is a positive quality. It is choosing to ignore information that is detrimental to our well- being, and this sometimes includes market information For example, let’s say at the end of September 2021 you hibernated, or put your head in…

Behavioral Finance Video by Jay Mooreland, MS, CFP® ATTENTION ALLOCATION You may be familiar with the term asset allocation, which is how we divide up our assets (stocks, bonds, cash etc.). Attention allocation is how we divide up our attention. Paradox of Abundance The paradox of abundance states that there is a tradeoff between quantity…

Behavioral Finance Video Surviving Volatility When volatility increases, many investors become uncomfortable and may consider making changes to their investments. Anytime we have a significant concern, it is essential we take a step back and assess the situation with the proper perspective. Volatility, while uncomfortable, is a normal and natural part of stock markets. It…