11Sep

An Emotional Rollercoaster

One of the biggest detractors from wealth is emotions. Emotions have a large influence your financial decisions. You could be buying a home or holding a stock that is falling. It is important when you are creating wealth to try and separate emotional and financial rationale.

Russell Investment Group has released an emotional rollercoaster that shows the different emotions an investor experiences through various investment cycles.

When you first enter the market you enter with optimism and as your investment increases you become excited. The risk in this area is that investors get carried away and continue to put all of the profits back into the market, effectively doubling up. This was evident before the GFC when everyone was investing, regardless of whether they understood what they where investing in.

Emotional Roller Coaster

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