Senior market analyst
Emotions and Investing Firm Updates Recipe of the Month Kim's Reads
This Month
April Newsletter
Emotions and Investing. Two things that never mix well.
One of the biggest challenges we face as advisors is highlighting the importance of not letting your emotions get the best of your investments. Allowing emotions to become mixed up in decisions that involve the stock market is never a good idea. We’d even go as far to say that emotions are smart investing’s biggest “enemy”. While we’re all human at the end of the day, the stock market can be quite a roller-coaster and days when we see fluctuations in the market can sometimes result in people making drastic decisions about their investments. So what is emotional investing and how do we avoid it? "Emotional investing is when an investor makes drastic decisions about their portfolios based on a recent turn of events in the markets" Why is this bad? Emotions like panic, fear, anger or greed typically don't have any reasoning behind them.
Good investing practices are based on sound reasoning and monitoring trends in the market. Emotions tend to deviate our ability to remain focused on the long-term intent of the original investment plan. A great example of this would be looking back to the last quarter of 2018 when the news headlines continued to focus on a “possible” recession. Many of these headlines were so focused on the rhetoric and the emotional aspect of a possible decline in the market, that they were ignoring what the data was indicating. Those investors that panicked and sold their portfolios at this point in time would have completely missed out on the economic upswing we've seen so far in 2019. The point being that the data should always speak louder than the noise surrounding it. So how do we avoid letting our emotions get the best of our investments?
All investing involves risks including loss of principle. No strategy assures success or protects against loss. Historical performance is no guarantee of future results.
Emotions and Investing..continued.
1. Diversify your risks 2. Don’t focus too much on the short-term ups and downs of the market. 3. Stick to your long-term financial plan. It was put in place for a reason, especially if it was put in place by our team! 4. Try not to over-monitor how your investments are doing. With a solid, long-term financial plan put in place small fluctuations in the market often don’t merit worry 5. Look at the reasons behind why you want to make a change in your long-term portfolio. Is it associated with panic due to a shift in the market? Or a current need for funds? 6. Don't let the nightly news headlines, which tend to sensationalize things be your only source of information when making a decision. 7. Never hesitate to call your advisor to discuss your anxiety about the markets, that is why we are here!
Our team also had a lot to celebrate outside of the office this month when Devon, our Operations Manager tied the knot with her now-husband, Josh! Congratulations to the happy couple!
Firm Updates
We're excited to share some more updates on our new office space! Stay tuned for our official move in date and for details on our office- opening party!
Recipe of the Month
Instructions: Preheat oven to 350 degrees F Separate the 4 eggs from their yolks, set aside the 4 egg whites and leave at room temperature Combine the 4 egg yolks, condensed milk and key lime juice in a bowl, stir until blended. Pour the mixture in the pie crust. Place the pie in the freezer to chill In a separate bowl for the meringue, combine the 4 egg whites and the almond extract. Beat until you start to see peaks forming. Gradually mix in the sugar and stir until completely dissolved Pour the meringue mixture over the pie, making sure to spread the mixture all the way to the pie crust edges. You can use the back of a wooden spoon to create the fluffy texture Place in the oven and bake until the meringue is light brown Let cool before serving If you don't eat the pie immediately, place the pie in the freezer and remove an hour before serving
Hank's Key Lime Pie Ingredients: 1 9-inch graham cracker pie crust 1 14 oz can of sweetened condensed milk (Eagle brand, if available) 1/2 cup key lime juice 4 eggs 1 cup of sugar 1 teaspoon of almond extract
Kim's April Read
Where the Crawdads Sing: by Delia Owens "A murder mystery, love story and ode to nature all at once." "Where the Crawdads Sing centers on Kya, a young woman who was abandoned by her family when she was just six years old. Growing up alone in coastal North Carolina during the 1950s and '60s, Kya is demonized by and ostracized from the surrounding communities. When a prominent high school athlete, turns up dead in the marshes she calls home, Kya is immediately marked as the prime suspect in his death."
