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….
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VIDEO: Behavioral Finance – Pragmatic Perspectives
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…
VIDEO: Behavioral Finance – Investing in a Bear Market
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…
VIDEO: Behavioral Finance – The Virtue of Strategic Ignorance
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…
VIDEO: Behavioral Finance – Attention Allocation
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…
VIDEO: Behavioral Finance – Surviving Volatility
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…