Each day brings a new set of choices for you to make. From the moment you wake up, you are constantly choosing the path of your day. You might choose to hit the snooze on your alarm to catch a few extra minutes of sleep. If it’s cold outside, you might pick something warmer to wear for the day. Maybe you’re not feeling so good, and you might skip breakfast. No matter the circumstances, you are making decisions that you perceive to be the best for you.
Money and Emotions
We’ve all heard the saying “buy low and sell high.” This seems simple enough, but people tend to make very emotional decisions when it pertains to their money. During good times when the market is up, you might be more inclined to put money to. However, you may become more protective during bad times when the market is down. Everyone wants to make money, and no one wants to lose. The perception that comes along with the constant messages of today’s 24-hour news flow may lead you to make decisions based on these emotions rather than what’s really in your best interest.
At Good Life Financial Advisors of West Virginia, your best interest is our goal. Contact us today!
Investing in the market is predictably unpredictable. On any given day, one analyst may predict the market to rise, while another calls for a drop. And at some point, both analysts will be correct. In today’s global economy, an unexpected event can change the barometer of the market overnight. These events could be anything from an act of war to, as witnessed recently, an outbreak of illness. The violent price swings that often accompany these episodes also have a direct impact on the investor psyche. These market reactions—or overreactions in some cases—often create opportunities that you may miss if your emotions get in the way.
Market Corrections and Crashes
Most of us can remember a time when the market went down. There was Black Monday and the 1987 stock market crash. There was the tech bubble in the early 2000s. In 2008-09, there was the financial crisis. Each of these events has a negative connotation attached to it. However, you can look back on each one of these downturns and see what would have been some terrific buying opportunities. For a more in-depth discussion on this, contact us at Good Life Financial Advisors of West Virginia today!
Investing in a Downturn
Let’s say you go to the store and find a new outfit you like, or you go to the dealership and find a new car. Both are exactly what you want, but they are listed at full sticker price with no discounts available. More often than not, you will wait on these items to go “on sale” before making your purchase. It only makes perfect sense for you to purchase the same product at a much cheaper price. Investing in the market isn’t very different. Each investor has a set of investments that are appropriate for them. These investments may go “on sale” during a market downturn, creating an opportune entry point.
Contact an advisor at Good Life Financial Advisors of West Virginia to discuss which investments are right for you and the risk associated with them.