Insights Blog
Embracing the Spectrum of Emotions
Jun 19, 2023 // Adam Bruderly
Investing can be an emotional roller coaster, with the excitement of portfolio growth followed by the panic of market downturns. This emotional ride is rooted in the experience of loss aversion, a psychological principle suggesting the pain felt from financial loss is twice as potent as the pleasure experienced from a similar gain. However, it’s crucial to recognize that allowing our emotions to guide our investment decisions can lead to irrational choices.
Just as stepping out of your comfort zone can be challenging in other areas of life, such as participating in a triathlon or speaking publicly, it can also be difficult in investing. This discomfort can lead to a flywheel of negative self-talk and impulsive decision-making, which could potentially undermine your financial health.
At Journey, we provide the foundation and tools to help you build a truly resilient investment plan. By learning to manage and embrace discomfort on top of building your plan could allow you to enhance your investment decisions, paving the way for potential achievement of your personal and professional financial objectives.
Get comfortable with being uncomfortable…
Four Pillar Friday
Your weekly guide to thriving in every aspect of life—Physical, Mental, Spiritual, and Financial Wellness.
Mid-Quarter Market Commentary
While the Fed and the market are fairly aligned in their expectations, fixed income markets are likely to remain somewhat volatile while the fiscal impacts of the new administration’s policies become clearer. However, higher yields insulate bond investors from interest rate risk and elevated equity valuations make bonds more attractive on a relative basis. Given the level of concentration within US equity markets, we believe that international, value and small-cap equities provide a critical element of diversification. We advocate building portfolios to achieve your long-term goals as opposed to trying to react to the latest headlines. Please don’t hesitate to reach out to your advisor to schedule time to discuss your financial plan, including your goals and planning assumptions.
Four Pillar Friday
Your weekly guide to thriving in every aspect of life—Physical, Mental, Spiritual, and Financial Wellness.