I recently stumbled upon a gem of wisdom from Carl Richards of Behaviour Gap that I think you’ll appreciate. In his words, if your investments and the stock market are getting you down, it might be time for a comforting hug!
Allow me to elaborate. As humans, we’re naturally wired to seek security and pleasure while avoiding pain. This instinct has served us well as a species, but it can wreak havoc on our investment decisions.
When investment markets decline and it’s sensationalised online and the financial news media starts telling you it’s time to flee to safety before you’re penniless, it can feel like you’re being chased by a wild animal. The immediate response is to run!
Fear is an entirely normal reaction to the perceived threat but the thing you need most is not a lecture on historical stock market returns or spreadsheets and charts full of numbers, it’s good old-fashioned reassurance. You need someone to listen to your concerns, to offer empathy, kind words, and comfort.
Once everyone feels more rational, we can then delve into the numbers and the charts and the meticulous work that went into crafting your investment portfolio. We can revisit your objectives and your values that underpin that strategy. We can even discuss the weighty evidence from history and talk about how the best course of action is to remain invested. All of this is essential.
At the heart of Carl’s message and our approach to your financial well-being is the recognition that emotions often drive financial decisions. It’s perfectly normal to feel uneasy during market turbulence but remember that we’re here not just as your financial planner but as your support system to provide those metaphorical ‘hugs’ when needed.
If you ever find yourself overwhelmed by market news or just in need of a friendly chat, don’t hesitate to reach out. We’re here to lend an understanding ear, a reassuring voice, and even a virtual “hug” to keep you on track with your financial journey.
Remember, we’re in this together!
You can read Carl’s article here.