Many people yoyo when they think about their investments. At any moment they will think either ‘this investment is great’ or ‘this investment is terrible’ depending on whether the value of the investment has gone up or down recently.
Often this way of thinking is a result of either not understanding or not having full faith in their investment philosophy. This may be because the investments were picked from something like a ‘top 10 funds list’ or maybe they were automatically chosen for them by their employer.
We believe that this yoyo way of thinking is a potentially dangerous way to view your investments. It encourages a short-term mindset and increases the likelihood of wanting to change things. Everything changes when investors understand that successful investing is far more about managing their behaviour than trying to outsmart the stock market. Focussing on what you can control is key to investment success.
Ultimately, if you do not have 100% conviction in your investment philosophy then you are far more likely to make a mistake. When you invest using an academically driven approach such as our Best Life Portfolios, you should have complete peace of mind that you got the strategy right and you can be assured that all of our investment decisions are grounded in long term evidence.
When investing into our Best Life Portfolios, you can see your investments simply as a vehicle to achieve your long-term goals and objectives, you should be free to look out the window and get on with your life without worrying about what happened this week in the stock market.
This article is for retail clients and is provided for information and educational purpose only and does not constitute advice.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Best Life Financial Planning Ltd is an appointed representative of Best Practice IFA Group Limited which is authorised and regulated by the Financial Conduct Authority.
What our clients say
Joe has been our trusted IFA since early 2017. He is extremely well informed and enables us to make calm, reasoned and sensible decisions with regard to all of our personal finances.
He is skilled at allowing us to become financially astute and allow us to live without anxiety about what happens with our money.
Joe continues to offer wise advice and support for which we are most grateful.
Mr R Porter