April 21, 2020

Natural cycle of investor emotions

In some ways time is moving more slowly at the moment – a week can seem like a month, and it’s difficult to know what day it is sometimes. However, this does give us time to pause and reflect. This can be both good and bad.

Many of us will be anxious about market conditions and what they mean for our finances. However, these emotions are to be expected, and follow a recurring cycle, as illustrated in this graphic.

You might feel excited when your investments perform well, or anguished when they fall, but there is also a wave of other emotions that we all experience over the course of any investment.

Most of us can probably be placed somewhere between fear and anguish right now, but it is important to remember that this emotion will pass as we move through successive stages of the process.

A key part of our job is to guide you through this process. Working together we can ensure that you look beyond the short-term emotion and make the right financial decisions for you.

April 21, 2020