The Cycle Of Market Emotions
“The Cycle Of Market Emotions” is a chart we share during times of heightened volatility as a great reminder that the performance of the markets is cyclical, and emotions tend to be cyclical with it.
We hear people say, “I’ve lost X amount!” when their account’s performance is down. However, it’s so important to remember that while account values fluctuate and may move down, the “losses” are not real until you sell when a portfolio is down.
Let’s use a piece of real estate as an example. If you buy a piece of land for $100,000, if you later get an appraisal which comes back with the property value at $80,000, are you going to try to sell the property or wait for it to appreciate in value again?
At Christian Financial Advisors, our response to the markets’ activity is based on discipline and wisdom. Emotions should not be the deciding factor for investment decisions, and we help guide our clients through the emotions that may come during the fluctuations we are seeing.
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Past performance is not indicative of future results. For any discussion of equity securities: Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. For any discussion of taxes: Christian Financial Advisors® does not provide tax advice and encourages you to seek guidance from a tax professional.