How your personality affects your investment choices
This is a very interesting article about behavioral finance – and why you need an advisor.
If you invest regularly you’ve probably made investment mistakes. Maybe you sold a winning stock too early or held on to a losing stock too long. Mistakes are common in investing and here at Morningstar we are constantly trying to help you avoid them. However, there are mistakes that seem to haunt all of us, the ones where you went against your advisor or followed your gut to no avail.
Mark Smeez, 33, from Hamilton, Ont., knows this all too well. He says that during the 2008 crash he sold all of his stocks and mutual funds. “I didn’t have an advisor, but I did have assistance from someone in the financial industry and they told me that the storm would pass.”