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Free yourself from cycle of emotional investing

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POSTED August 27, 2014 7:52 p.m.

If you’ve been investing for a while, you know the financial markets go through “up” and “down” cycles. And you may respond to these normal market cycles by going through emotional cycles. But this can lead to problems.

Why? Because market cycles and emotional cycles don’t really align. For example, just when the market is entering a new, positive phase following a long downturn, your emotional cycle may have reached the “fearful” stage. And your fear may keep you from investing — even though, with prices low, it can be a good time to invest.

Try to avoid these types of emotional responses to market cycles. Instead, build an investment portfolio that reflects your objectives, risk tolerance and time horizon, and seek to hold appropriate investments for the long term.

 If you can detach yourself, as much as possible, from the emotional cycle of investing, you can avoid a lot of angst - while helping clear the path to pursue your goals.

 There’s no time like now to prepare for your future. Contact Sharon Amick, Financial Advisor with Edward Jones at 209.824.1000.

This article was written by Edward Jones for use by your local Edward Jones Advisor.

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