Behavioral finance research shows emotions influence investor decisions, often to their detriment.
The most powerful emotion is loss aversion, which drives panic selling.
The second is herding, which drives return chasing and narrow framing.
Investment plans are built with the best of intentions.
But investors often fall into behavior patterns that compromise long-term plans.
The trouble with ‘buy and hold’ is that investing can be a bumpy ride, with unpredictable periods of severe losses.
That makes it difficult to hold on, causing many investors to ‘buy and fold’.
Since 1997, our Defined Risk Strategy has been providing a smoother ride by generating consistent returns and minimizing losses in bear markets.