Create Confidence in Your Financial Future
by Tom Kirk
Traditionally, financial markets thrive in times of confidence and certainty. We here at our wealth management services firm in Satellite Beach, FL – Melbourne/Brevard area know it’s when things are uncertain, in flux and unpredictable that things most often go sideways. That said, fear can be a very effective selling tool and can be extremely profitable to some people. And when people start buying into opinions based on fear, there can be huge public misunderstandings about the way the world, particularly the financial world, works.
Certainly, you’ve noticed how headlines on news shows are mostly about bad news. That’s because bad news sells: it keeps our attention, results in good ratings for the news broadcast and generates more revenue from advertisers.
The same is true when it comes to financial news, but worse. It can lead people into making really uninformed, knee-jerk choices about money. And financial decisions should never be made under those circumstances. The truth is, it is because fear is a very strong emotion, fear-based decisions can have disastrous consequences.
A prime example of this is the tendency of people to time the market, that is, investing in the stock market when it is going up and being out of the market when it is going down. You might get the timing right occasionally, but you are much more likely to get it wrong. Very wrong – almost all of the time. A promoted goal of this strategy is avoiding losses. But the truth is the odds are better at the blackjack table than they are at timing the market. No rational person would take their retirement money to a casino, but that is what you are doing if you attempt market timing or other similar failed strategies.
It is virtually impossible to ignore all the negative financial propaganda. It can seem like it’s everywhere you look. So what are you to do?
First, resist the urge to react to negative financial news reports. Second, consult a trusted, reliable financial advisor to help guide you through the rough waters of a fluctuating financial market. Explore with our wealth management services firm in Satellite Beach, FL – Melbourne/Brevard area what it could be like to have your own personal WealthCoach™ serve as your financial advocate to help you navigate through the financial challenges and opportunities in your life. Please call us today at (321) 773-7773 or visit www.firstwavefinancial.com to schedule your complementary initial consultation!