You have most likely heard the adage, “Keep your
expectations low, and you’ll never be disappointed.” No matter how logical this advice may seem, managing our
expectations can be challenging. We are all driven by beliefs and emotions that influence our opinions of how things should be. Investing is no exception. All investors enter the market with certain expectations—usually to make money. Of course, how much money and at what cost can vary dramatically from investor to investor. If these expectations are unrealistic, investors are more likely to experience disappointment and make untimely investment decisions. All investment strategies have alternating periods of comfort and discomfort, which we call “behavioral seasons.” These seasons are generally external market
environments that elicit emotion from investors. Some seasons are favorable to investors, while some are not. Typically, seasons of Discontentment bookend a season of Contentment.
Today’s episode is all about helping you weather those
behavioral seasons of investing. I’m Michael Cranford, certified financial planner, and this is Stewardship Under the Sun.