Beating Your Brain and Investing Smart

While times may feel unsteady and unpredictable, if you take a look through history, you’ll see these very market fluctuations repeated, time and time again. The tricky part is convincing your psyche to invest during a downtime when the market’s on sale. So how can you override your human instinct to hoard cash in a downturn? And when will there be resources available to prevent ourselves from acting on less than financially favorable inclinations?

This week, Doug and Greg discuss their point of view on today’s crazy markets, the long-term implications of rising interest rates, why it’s best to avoid anxiety over unpredictability, and how to retrain your psyche to make smarter financial decisions.

Key Takeaways

[00:17] - An intro to this episode, the joys of family vacations, and Doug’s guide to wine tasting in Sonoma.
[09:07] - Why New Orleans is a great place to be.
[13:10] - How Greg and Doug view today's markets, who can best take advantage of the volatility, and how to remove psychological blocks and invest in a downturn.
[21:16] - How Verdad Capital and others are forcibly encouraging investors to buy-in when a crisis hits.
[25:32] - Greg and Doug’s closing thoughts.

Quotes

[14:13] - “Our job really as portfolio managers and as advisors is to try to put context in these types of situations for clients that these are normal types of market events. Historically, if you look at the stock market from 1980 to present you get an intra-year decline.” ~ Greg Stokes

[17:50] - “The rise in interest rates has afforded people the ability to not be as aggressive as they had to be maybe last year or the year before to achieve a reasonable rate of return.” ~ Doug Stokes

[20:02] - “The sort of psychological issue is that when things go on sale in the stock and bond markets, it’s really hard to take advantage of that because the human aspect of investing is that things are going to continue to get worse, which they might, but it really is a good opportunity if you look at it through the lens of the long-term, you try to separate your natural psychology from the situation.” ~ Greg Stokes

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Disclosure

The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.

Beating Your Brain and Investing Smart

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