C is for the cost of getting it wrong. The five most common pitfalls of the market cycle of emotions
As humans, we are all too familiar with the reality of being driven by our emotions. When things are great, we feel optimistic, untouchable and have a sense of euphoria. When things go bad, we often feel the need to take drastic action. Because emotions can be such a threat to an investor's financial health, it is important to be aware of them. This awareness can then protect you from the negative consequences of impulsive and irrational reactions to these emotions.
As an adviser, there is an immense opportunity for you to add value to your client’s portfolio over the long term. Helping your clients navigate these emotions and preferences from the outset and throughout your advice relationship is, often overlooked by investors considering a DIY approach.