Financial & Behavioral

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Investment Myths Vs. Realities

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Geopolitical events and earnings reports drive long-term investment returns, right? 

Think again. 

Global occurrences like the Cuban Missile Crisis and Iraq War have only resulted in short-term changes for the market, and not the long-term effects that investors might have imagined. (1)  

This is just one of several key factors that don’t play a role in your long-term returns (or as much as one might think). But most investors still overvalue the importance of these political occurrences on long-term returns. So what then?

Resist the Snake Oil

What’s the most reliable social media platform? Your answer probably varies from what your parents or (adult) children would say. (1) 

And actually, there’s no real consensus. Many of us turn to Reddit, YouTube, or TikTok to learn about money, yet we know influencers and advertisements don’t always speak the truth. Surprisingly, that doesn’t stop us from buying in to the financial advice we find on those platforms. (1)  

Spring: Planting the Right Seeds

What does your “ideal life” look like?

Seriously, imagine it. The house. The city. The people. 

How long has it been since you allowed your mind to wander into the realm of possibility? Simply remembering what makes you happy. What you believe in. What inspires you. 

I hope it hasn’t been long. But if you’re like most of us––you’re always on the go and distracted, leaving pie-in-the-sky time as a low-rung priority.  

Media & Confirmation Bias

Quick question: which behavioral bias do you think is the most dangerous?

Is it our tendency to follow the herd and chase trends? (This one plays out a lot in the stock market.) Maybe the human desire to avoid losses even at the expense of the bigger picture? (Another one that hurts investors.) Perhaps our propensity to oversimplify complex information to get easy answers? (Something we should keep in mind when watching the news.)