I’m sure you’ve heard this term before: “The Smart Money”. Smart Money knows when to buy and sell and what to buy and sell. Everyone else sells low and then turns around and buys high. (Most investors fall into the latter camp.)
Posts Tagged ‘Behaviour Gap’
In a recent meeting, a wealthy client told me a story about his daughter, who will be off to university in a few years. Our client said that he and his daughter were having a very nice discussion about where she plans to attend. She became very passionate about a small arts and sciences university here on the west coast.
The reality is that there is no such thing as the best investment. But that doesn’t seem to stop us from looking for it. What if instead of spending so much time searching for the best financial product, we spent our time reflecting on what’s really important to us and then aligning our use of capital with those values?
It surprised me how useful I found this question. We expect to hear “why” from a therapist or counselor, but not our financial adviser. It seems so insignificant, yet “why” is likely one of the most important questions we have.
Why is money important to you?
Whenever we are faced with things that we don’t understand, it can generate anxiety and fear. Real people often do obsess over the consequences of future events, even if they are almost always beyond our control. So here are three things to remember when you feel like you have no control of understanding of how the world is about to change: