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LOOKING PAST THE VOLATILITY

By March 28, 2017 No Comments

We’ve worked through many different market conditions over the years, some good and some bad.  Everyone gets concerned about volatility, and I like to reassure people that I design plans specifically with our clients long-term goals in mind.  Emails and blogs about the world coming to an end are all around us.  The ‘Noise’ from the media – the markets going up and down – can be overwhelming.

Research conducted by Dr. Daniel Kahneman, one of the founding fathers of behavioral economics and the only psychologist to ever win the Nobel Prize for Economics, suggests that:

  • When faced with uncertainty, investors tend to make decisions based on their emotions and subjective experiences, not on logic or objective reality.
  • As a result, investors can easily make the wrong decision for their individual situation.

We see market corrections as healthy events that provide our managers the opportunity to buy and/or rebalance at more attractive prices.  History has shown that the best course of action is to stick with your plan – your benchmark.  All of life’s events are temporary and become part of history.

Investing = volatility. Remember, just stick to your plan!  Click here:  A timeless lesson

On another note, many of our clients (including myself!) have received threatening phone calls from someone claiming to be from CRA saying that they were going to be arrested – don’t give these scammers any information!

Remember, we’re only a call or an email away!

“The more emotional the event is, the less sensible people are.”
~Dr. Daniel Kahneman, 2002 Nobel Prize Winner for Economics