Emotion + Investment = A Recipe For Disaster
The constant stream of information, daily stock prices, and the inevitable crises that inundate the news, all serve as a non-stop invitation for our emotional forces to enter into our financial and investment related decisions. The result can be seen in the above illustration by Carl Richards.
When the universal human emotions of fear and greed (excitement is another word) influence our investment decision making, it becomes all too easy for us to ignore the evidence that tells us that markets are volatile, and that attempting to time the market or identify mis-priced investments will likely lead to poor long-term results.
Your Goals + Your Actions = A Recipe for a Plan
Instead of allowing our behavior to sabotage our long term goals, focus on the the things that you can control over time. Save, invest, re-balance, delegate responsibility, manage costs, set goals, and enjoy life!
Image Attribution: Carl Richards, (c) Behavior Gap 2013