Acknowledge but Do not Act on Emotions
Researchers have found that a major threat to the performance of your portfolio is uncertainty. Investors hate uncertainty. Uncertainty leads to stress and anxiety which negatively impacts decision making.
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Researchers have found that a major threat to the performance of your portfolio is uncertainty. Investors hate uncertainty. Uncertainty leads to stress and anxiety which negatively impacts decision making.
The secret to developing an interest in spending time improving your finances is creating a vision of what you want your money to achieve.
Create a portfolio that supports your financial goals, provides liquidity for short-term needs, and gives you peace of mind. Establish an asset allocation that you can stick with through a major drop in the stock market.
Value stocks are sold at a discount to their intrinsic value with an assumption the price will eventually increase to market levels. Value stocks tend to be less volatile and frequently pay dividends. They may sell at a discount because the industry is out of favor or late in its life cycle.
Dollar cost averaging allows you to invest in the market while providing some protection against market fluctuations and downside risk. It is most effective for investors who have a long investment horizon, maintain a diversified portfolio, and want to minimize risk.
Women need to take an active role in managing the household finances. Organize your finances so you both understand your current financial situation – what you have, where it is held and how to access it.