Hidden in this idea that Markets = Feelings lies a subtle double meaning. On the one hand, so much of the behavior that drives the performance of securities markets is driven by the emotions of traders. On the other hand, most of the performance of investors’ portfolios depends on how they react to the performance of securities markets. To maximize returns in our portfolios, we cannot let day-to-day movements of markets influence how we invest for the long-term.
Many investors know this, but once our feelings get the better of us, it can be hard to control our behavior. In these situations, it can be very important to have a trusted advisor with whom to discuss the implications of current events and conditions on our long-term financial plan. In addition, having a comprehensive plan to help set the context for your decision-making can help minimize making choices that will negatively impact your financial security. A core service provided by Sycamore Financial Planning is serving as a sounding board and trusted advisor to its clients.