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Market Psychology


Have you noticed how quickly you will react to a sale? Especially one that is50% off!

So why are reactions to the market being on sale diabolically opposite?

There are two big reasons. The first is that you feel confident the 50% off sale of your favorite shoes is not going to go any lower vs the uncertainty of the market having a larger sale. Uncertainty.

The second is your own personal psychology of what your money is meant to do for you. This is a deeper unknown that can lead to undue stress of market volatility.

It is interesting that people spend their whole lives looking for opportunity. Seeking opportunity to find the right mate, opportunity to grow income, opportunity for kids – at every turn we seek opportunity. Yet, when the markets offer opportunity for buying at sale pricing some cringe.

How we respond to our money is different than how we react. When we react, we do so with emotions, and when we respond we do so with clarity. What is your clarity around your money? It is the understanding of your specific strategy as to the purpose of your assets for achieving your financial goals. When purpose and clarity co-exist, emotions are acknowledged but do not drive decisions.

Clarity is the integration of your values, goals, and risk tolerance to a specific strategy. What is your personal purpose of your money? A comprehensive strategy can lead you to your financial security.

Living in the noise of today ignores the music of the future. A well-executed plan may be your music of the future.

Are you ready for a different approach to your financial plan? Integrating your values, goals, and risk tolerance is the value we bring to you. Understanding life offers opportunities sometimes disguised as life-quakes is the relationship difference we bring to you. Call for your personal appointment to discuss finding your financial clarity.
 

Read more articles by Affinity Wealth Advisory Group