Your thinking still stuck in 2008?

The vividness of the 2008 crisis is still influencing investors’ decisions today, likely to the detriment of their portfolios, says Santa Clara University finance professor Meir Statman.

Listen and learn about fear, income, capital (investments), how people think money and pots of money, and diversification.

His point about Emerging Markets where economies do not necessarily predict stock market returns. Stock prices are affected by earnings forecasts and outlooks. Earnings are a result of efficiency of the company and workers, worker productivity and demand for goods and services. An economy may be growing based on its demographics. Whether that is reflected in stock prices depends on who benefits from those earnings … are they investor, or nationally, oriented earnings?

Technical note: IF you get an error message, refresh the page and the video should appear.

Source link from Morningstar. Note, the other “Related Links” on that page are also interesting and informative (with even more related links on those subsequent pages). The moral of the story: You are normal as to how you think. However, there are methods to address your “normal-ness” and improve your results.

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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