July 28, 2015

As Warren Buffett famously says “Be fearful when others are greedy, and greedy when others are fearful”. This is the guiding premise behind behavioral finance. As much as the stock market is made up of trading algorithms and valuation ratios, it is also highly sensitive to investor sentiment aka “irrational emotion”. If there is ever one reason I advise individual investors to work with a seasoned financial advisor, it’s during times like these where every decision you make needs to be calm, rational and forward-thinking. Making investment decisions during times of high fear or high greed can sometimes make or break your stock portfolio. See the CNN link below to learn a bit more about the power of Fear & Greed on your investments:

http://money.cnn.com/2015/07/27/investing/stocks-markets-fear-and-greed-index/