Emotional Investing

Inflation is an important element of investing. In many cases, the reason for saving today is to support future spending. Therefore, keeping pace with inflation is a crucial goal for many investors.

The Impact of Inflation

Dimensional Fund Advisors has shared a story written by Dave Goetsch, executive producer of The Big Bang Theory. 

September 2017

It will soon be the 10-year anniversary of when, in early October 2007, the S&P 500 Index hit what was its highest point before losing more than half its value over the next year and a half during the global financial crisis.

In many respects, people can be their own worst enemies in their quest for financial security. When you consider that our lives are nothing more than a culmination of the decisions we make each day, if we tend to make more bad decisions than good decisions, or worse, if we can’t make decisions at all, it’s should be no surprise when financial security  remains elusive.

In the past few days we have seen much volatility in equity markets. For many investors this causes fear and even panic. We want to remind all of our clients that emotional decisions in investing do not payoff. History has shown that the disciplined investor who stays the course will be rewarded.