News

Psychology: The Investment Rollercoaster

September 3, 2012 3:55 pm

Hi all!

For those of you who have met with me in our office, you may well have seen me jump up and point to the only poster on the wall – ” The Cycle of Market Emotions”. The reason I love this poster is the fact that successful control of ones ’emotions’ plays such a huge part in the ‘lifetime’ investment returns that individuals achieve. Whether it be shares or property, the horror stories are generally told are from those people who ‘bailed out’ of their investment when their emotions got the better of them. It is perfectly O.K. to feel emotions such as ‘fear’ and ‘anxiety’, but what is not O.K. is to react inappropriately.

In the following video, AMP Capital’s Dr Shane Oliver discusses the rollercoaster of investor emotions and how investor psychology works over the market cycle. Dr Oliver demonstrates how managing your thinking can make investors clearer minded in avoiding the risks and finding the opportunities.

I really hope you get something out of the following video and would love to hear your thoughts and/or meet with you to discuss your ride on the “Investment Rollercoaster”!

(Sorry to all iPad & iPhone users – Adobe Flash Version only)

P.S. This video can be applied to many areas of our life! So hang on and enjoy the ride!