Here's how making poor investment choices is like watching classic thriller ‘Jaws'

  • 📰 NBCNewYork
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Investors tend to make choices based on recent events, like a steep drop in stocks It’s akin to watching the movie “Jaws” and then being afraid to swim

The financial services sector was among the top performers of thein 2019, when it yielded a 32% annual return. Investors who chased that performance and subsequently bought a bunch of financial services stocks"may have been disappointed" when the sector's returns fell by 2% in 2020 — a year when the S&P 500 had a positive 18% return, Aguilar said.

"Short-term market moves caused by recency bias can sap long-term results, making it more difficult for clients to reach their financial goals," he said.— based on market behavior, said Charlie Fitzgerald III, an Orlando, Florida-based certified financial planner. "People need to understand that recency bias is normal, and it's hard-wired," said Fitzgerald, a principal and founding member of Moisand Fitzgerald Tamayo."It's a survival instinct.""If I get stung by a bee once or twice, I'm not going to go there again," Fitzgerald said."The recent experience can override all logic."

Such a portfolio generally has broad exposure to the equity markets, via large-, mid- and small-cap stocks, as well as foreign stocks and maybe real estate, Fitzgerald said. It also holds short- and intermediate-term bonds, and maybe a sliver of cash, he added.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 270. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines