Helping clients to keep their head out of the clouds

In a world of complex data and an abundance of information, the human brain is hard-wired to seek patterns as a way to simplify and focus on the relevant feeds. The challenge is, in its zeal to find patterns, the brain sometimes identifies patterns where they don’t actually exist. That may not matter so much in some areas of life (for example, every time I’m in a hurry, I hit every single red light on my commute). But when it comes to investing, some “patterns” are disguised in the form of market trends and are best left untouched. This quarter’s Investor newsletter unpacks some of the most famous – and dubious – market patterns (for instance, “The Sell in May and Go Away” theory) in an effort to help investors stay focused on the long-term plan they have developed with you, their trusted advisor.

The bottom line

Consider sharing this quarter’s Investor newsletter with clients to help them understand the dubious nature of some popular market patterns. After all, for most investors, their retirement portfolio is the financial legacy of their working life. It’s simply too important to put at risk in testing the viability of market trends.