Broker Check

The Holy Grail of Investing.

April 18, 2022

Most of us would love to find the Holy Grail of investing – an investment that provides great returns with very little (or no) risk. Many investors consciously acknowledge that such an investment doesn’t exist. But we may still be attracted to that investment because of how badly we wish it would exist. And sometimes hope and desire, unconsciously, overrule logic and rationality.

 

As Hype and concern grow, we can expect that someone will create an investment product or strategy to “solve the problem”. Based on current headlines, we could see investments that claim to prosper during periods of inflation, stagflation, war or “overextended” markets. No matter the concern of the day, we can reasonably assume the marketing will be very good - an emotional appeal to alleviate our concerns and fears.

 

Our emotions and unconscious desires often inhibit skepticism and reasoning. Acting on emotions is the natural first response for many of us. It’s just the way we are hardwired. Thinking logically takes effort. That is why you have me. Together, we can ensure that your investment decisions are free from emotion, unconscious influences, and in line with your plan.

©2022 The Behavioral Finance Network. Used with permission