Overview of LT Wealth’s June 2020 client communication.
When it comes to everyday life, people are attracted to things when they go on sale. From January white sales, to end-of-model-year car sales, to black Friday – bargain prices draw us in.
But for some reason, this perfectly normal, supremely rational way of conducting our economic lives suddenly turns completely on its head when it comes to the stock market.
In this month’s commentary, Nick Murray discusses the impact financial disruption has on investor psychology and the desire to panic sell. Using historical examples, he shows that over time acting on the emotion of fear has consistently turned out to be a serious mistake. He concludes with a valuable reminder that a temporary market decline only becomes an irretrievable loss of capital when/if you decide to panic sell.
Quote of the Month:
“The investor’s chief problem -and worst enemy- is likely to be himself. In the end, how your investments behave is much less important than how you behave.” – Benjamin Graham
Terry Wright, CIM
Portfolio Manager and Financial Adviser
LT Wealth Management Partner
Music Credit: BenSound
Raymond James Ltd. is a Member of the Canadian Investor Protection Fund.