Individual investors start out with a distinct disadvantage, even if they have a financial or business background. Individuals are constantly second-guessing their investments selections because of insecurities and fears. It’s just human nature to be emotionally involved with your money. A Behavioral Investment Counselor may actually save an investor from himself.
Nick Murray’s book, “Behavioral Investment Counseling” started a dialogue about the role of professionals in the financial industry. A financial planner can and should provide “behavior modification” when an individual can’t get emotional distance from his or her investments. A Behavioral Investment Counselor can have that emotional attachment on a personal/professional with his or her clients while staying detached and logical about financial planning for the future. In a nutshell, a Behavioral Investment Counselor saves you from an excess of investor emotion.
Chasing the bubble
Many investors don’t know when they stopped investing prudently and started chasing the market. Investors make emotional decisions instead of buying stocks and other investments after careful analysis.
Selling in a panic
Global investor and philanthropist Sir John Templeton once said, “Sell at the height of optimism and buy at the height of pessimism,” but most people tend to sell in a panic. A Behavioral Investment Counselor keeps a grounded approach by helping a client stay invested but re-balance and tweak a portfolio as needed.
During the current bull stock market and after the last few days, it’s difficult to stay rational with all the market euphoria. Market timing has been proven over and over again to be a recipe for disaster.
To learn out how Aurochs Financial Group can help you with prudent financial planning through the good and bad times, contact us.
Your Guide to Financial Independence