Market volatility like what we have experienced over the past few years can make even the most seasoned investors anxious. Many of my clients are already asking me, “What should I do?” as the next presidential election approaches — even though it is a little over a year away. When you take into account the pandemic, global geopolitical uncertainty and our divisive domestic political reality, it’s no wonder clients become nervous and look to buy or sell based on their fear, or on what friends, co-workers or “experts” in the media or on social media recommend.
Financial advisers can play an important dual role as coaches and therapists who can calm investors when they become anxious and prevent them from making hasty decisions that could cause long-term harm. Below are three of the most common influences that investors can fall prey to when they let their emotions take over:
