Chasing Returns

A favorite (and costly) pastime of investors is to invest in assets that have recently done well. This happens in good times as investors seek better returns, and they happen in bad times as low-yielding investments such as cash are more attractive than money-losing stocks. In other words, investors chase returns. By investing in whatContinue reading “Chasing Returns”

If Money Doesn’t Buy Happiness, What Does?

For centuries mankind has been searching for happiness. Regardless of culture, social status, or beliefs it seems that we are all connected by our desire to be happy. What makes someone happy and how much happiness we feel may be subjective. But there are a few fundamental principles that tend to detract and add to anContinue reading “If Money Doesn’t Buy Happiness, What Does?”

Trusting Your Investment Decisions

Decision-Making Under Uncertainty Investors face a very different environment today. While the future is always uncertain, today’s environment may be even more uncertain. We are living in a time of increasing inflation, increasing interest rates, and tighter fiscal and monetary policy. We aren’t used to this. Making good decisions is always desirable. But when weContinue reading “Trusting Your Investment Decisions”

Some Thoughts on Thinking

The ability to think clearly and draw correct conclusions is necessary in everyday life, especially when it comes to making important decisions. But thinking critically is not natural; it’s not the way our brains are hardwired. Instead, we are hardwired to follow the path of least resistance, which often results in hasty and suboptimal decisions. This is especially prevalent when uncertainty, anxiety, and emotions are high.

Investing Amid Uncertainty

Investors express discomfort when things are uncertain. This is especially true when experiencing “heightened uncertainty,” such as with the current Eastern European conflict. However, uncertainty is not just a circumstance of economic and investment markets, it is a fact of life. Our future, by definition, is uncertain. There are times when the future is lessContinue reading “Investing Amid Uncertainty”