5 Tips to Separate Emotion from Logic – by Richard Cayne

Your money. Your future. Your family’s future. What could possibly be more important? It is perfectly reasonable for you to be concerned about your family’s future in regards to your investment decisions. So do you follow your gut when it comes time to buy or sell with an investment? In times as uncertain as these, it’s a difficult decision to make on whether to pull the trigger or not with various investments. A review, hopefully with a trusted financial advisor, is something you absolutely need to do before making any knee-jerk decisions that may hinder you in the long run.

Sadly, when it comes to money, some of us are our own worst enemies. Thankfully, there are strategies and tools we can utilize to our advantage when wrestling with the difficult decisions.

Know your limits

Even the most successful and wealthiest among us have to consider all the options at their disposal, including their own appetites and capacity for risk.

If you find yourself staring down a potential investment opportunity, you have to weigh the potential between profit and loss. Can you handle the loss? Always remember: There is no such thing as a sure thing.

Sometimes we feel that sense of FOMO (fear of missing out). There may be a strong urge to seize what seems like a major opportunity, but regardless of whether you’re buying or selling, you need to consider just how much of a risk you are willing to take on.

Think in the long-term

Recent market fluctuations that have come about due to COVID-19 have proven that, ultimately, markets can and often do level out, even after being slammed by catastrophe.

With that in mind, to react to hastily to sudden or alarming fluctuations in the market may lead to you suffering unnecessary losses.

Thinking in the long-term sense can help you to study past historical performances in your given market and ultimately pause long enough to take a deep breath and consider the best course of action for your investment strategy. Just look at the S&P 500. Since its inception, the S&P 500 index yields an average annual return of approximately 10%. Just because it dips a little doesn’t mean it’s going to plunge. One must always maintain a broader view of the situation.

Educate yourself

Making informed choices is key if you don’t want to sit around waiting in the long term. Your portfolio is bound to start shrinking fast if you buy everything that is gaining value and sell everything that’s on a downtick. Don’t get triggered by that FOMO. Due diligence and research are the name of the game. It doesn’t hurt to take that extra time to read up on what you’re investing in find out for certain where your money is and, more importantly, where it’s going. The extra time you take to do the research will be of great benefit to you in the long run.

The media does not know everything

There’s nothing wrong with utilizing news and media outlets to your advantage in becoming more well-informed. They can be an excellent launching pad, particularly if they have a solid reputation in business and finance.

Always keep in mind, however, it’s not their job to look after your money. It’s to grab the attention of the reader. So while it may be a valuable source of information, it’s paramount that you stay as widely read and well-informed as possible. Don’t get sucked in by the clickbait headlines that pop up all over the place. As the old saying goes: “Trust but verify”.

Don’t be afraid to ask for help

In addition to doing your own research, it never hurts to reach out to a trusted expert. I myself have spent decades assisting and advising high net-worth individuals. I can explain, review and discuss your investments with you as they apply to your particular financial situation to ensure that you make the best and most well-informed decisions for your money and your future.

Richard Meyer Cayne has helped many High Net Worth Families with issues such as wealth accumulation, succession planning as well as overall portfolio construction and management using modern portfolio theory. Richard Cayne has helped from both very basic beginner portfolios to advanced extensive portfolios and has assisted thousands of Japanese accomplish their financial planning goals and objectives. Richard continues to try and make a difference in his client’s lives and always encourages his clients to discuss their family’s finances with their children in the hopes of getting them involved in understanding how the family can preserve and grow its wealth and contribute new ideas towards the common goals of the family.

In 2010 The Meyer Group was acquired by Asia Wealth Group Holdings Ltd listed on London’s AQUIS Stock Exchange