FYI: The stock market got interesting again this week. Volatility is back after having gone missing for the past 18 months or so.
I saw the following words spewed across the financial media this week: turbulence, fear, pain, panic, distress, agony. It’s still a little early for all of that. As of the close on Thursday, the S&P 500 is a little over 10% from its all-time highs.
But try telling that to your emotions when you’re witnessing a decent percentage of your savings evaporate over the course of a little more than a week. The pain we feel from losses dwarfs the pleasure we feel from gains.
Because of the havoc they can wreak on our portfolios, investment professionals and advisors often instruct their clients to ignore their emotions during times like this.
Regards,
Ted
http://awealthofcommonsense.com/2018/02/the-drawbacks-of-behavioral-finance-during-a-market-correction/
