Financial Library

Cycle of Market Emotions

Getting emotional about investments can easily lead to poor decisions as investors fall prey to negative thoughts and fears. The chart below helps to illustrate the emotional aspects of investing.

The human brain constantly searches for trends or patterns in things, trying to make sense out of even random events and data. This essential life skill is not very helpful when it comes to investing.

Keeping Emotions in Check

We have experienced a long bull market over the last 13 years and markets always move in cycles. With inflation running rampant and war in Ukraine, oil and gas prices have skyrocketed. Oil being the main factor in increasing the prices for everything from food to the services industry.

Here are a few articles to help keep your investment emotions in check in times of extreme volatility:

The Fed "Put" Revisited

When investment markets officially hit "bear market" territory in June 2022 - while Central Banks in North America and elsewhere were continuing to raise interest rates - questions began swirling about whether the US Federal Reserve (Fed) would once again rescue the markets by exercising the famous Greenspan "put"!

Portfolio Diversification

Looking back over the past few years, one thing is certain - we can never be absolutely sure what the financial markets will do at any given time. We can study charts and graphs, both historical and forecasted, we can consult with economic experts, business leaders, and government officials, we can look at inflation and interest rates, and still we cannot predict the markets with absolute certainty.


Subscribe to our Newsletter

Click Here for Current Issue


Email marketing by AdvisorNet Communications Inc