Don’t play the game
The chart above explains why so many people (professionals included) underperform the market. The markets are not sentimental. Most investors react to news and as a consequence experience these feelings outlined above. The market is not the place to gain emotional maturity, the lesson it teaches is that time in the market will provide a better experience than trying to time the market. Do not make investing an emotional experience, it is a discipline.
Changing the real you?
It is interesting to note that from studies across the world, FinaMetrica (the risk profiling tool that we use for our clients) have found that the vast majority of clients do not change their general attitude towards risk, some do, but most do not. Most investors are… well “medium risk” which is a very unhelpful term, but something that most of us probably know in our core being.
Be yourself, not your investment adviser
Conversely, most financial advisers and investment managers score far more highly on the risk scoring system – they are higher risk takers. This might be for a number of reasons, perhaps more aware about how markets operate but also perhaps because the majority are wedded to the success of markets. This may and would have an impact on your investments if you simply opted for the advisers appetite for risk rather than your own. That is why I believe it is really important, vital even, for you to ensure that your appetite for risk and your capacity for loss are your own and not mine, or anyone else’s. Getting your portfolio right should mean that whilst there will be disappointments at times, there should not be unexpected results.
Real Women Have Curves
As in other aspects of life, there are many that will attempt to reduce almost everything to the point that conformity and uniformity are indistinguishable… this in mind, here is the trailer for the 2002 award winning film “Real Women Have Curves” starring America Ferrera, who is best known for her leading role as “Ugly Betty” and you may have been fortunate to see in the West End in one of the many productions of Chicago.
You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on my blog which gets updated every week. If you would like to talk to me about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email firstname.lastname@example.org