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October 2008

 

The Cycle of
Market Emotions

Getting emotional about investments can easily lead to poor decisions as investors fall prey to negative thoughts and fears. The chart below helps to illustrate the emotional aspects of investing.

The human brain constantly searches for trends or patterns in things, trying to make sense out of even random events and data. This essential life skill is not very helpful when it comes to investing.

Stock markets tend to follow random walks and therefore have no predictable patterns. The patterns and trends that investors think they see are...

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I want it all and I want it now 

The neighbors have a shiny new sport utility vehicle to tow their travel trailer. They take a two week tropical vacation every winter. Their family room is equipped with the latest large screen TV and surround sound stereo system.

Many people believe this is a sign of wealth. In fact, this is usually a sign of consumption. More often than not, the above lifestyle is funded with huge amounts of debt.

Fewer and fewer car ads list actual vehicle prices. Instead, they advertise supposedly low monthly payments. Often these payments are for a lease based on...

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Take a retirement test drive

If you were to paint a picture of your retirement, what would it look like? Who do you know who is retired and what is their retirement like? What do you like about their retirement and what don't you like? Your answers to these questions will help with your retirement picture.

Many people believe that their retirement will be lots of traveling, golf, fishing, and perhaps living in an exotic location. The reality is, some of these retirement dreams require substantial financial resources. Others take up only so much time in the day. What do you plan to do with...

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Tell a Friend

“Whatever course you decide upon, there is always someone to tell you that you are wrong. There are always difficulties arising which tempt you to believe that your critics are right. To map out a course of action and follow it to an end requires courage.”

Ralph Waldo Emerson


Commissions, trailing commissions, management fees and expenses all may be associated with segregated fund investments. While the principal amount of a segregated fund investment may be guaranteed, their values change frequently and past performance may not be repeated.  Please read the prospectus of the segregated funds in which you invest.  The information in this email newsletter is general information only and is not intended to constitute specific legal, accounting, financial or tax advice for any individual.