August 27, 2024

Stuff About Money: Episode 71: Should I Adjust My Portfolio? The Emotions of Investing with Dr. Matt Morris

50 minutes

In this episode of the "Stuff About Money" podcast, host Erik Garcia CFP®, BFA™, ChFC®, is joined by long-time friend of the show, Dr. Matt Morris. Together, they tackle the question: "Should I adjust my portfolio?" as they navigate the emotions of investing in a volatile market. Erik provides insights into current market noise, discussing factors like employment rates, Japan's rate changes, the federal reserve, and media influence on investor sentiment. Dr. Matt and Erik discuss strategies for managing emotions and making informed decisions amid uncertainty.

The conversation explores stories from the trenches and examines destructive and disruptive behaviors impacting wealth building. Erik and Dr. Matt emphasize the importance of attaching purpose to your investments. By managing emotions with objective facts and educating oneself on market performance, investors can maintain perspective and avoid fear-based decisions. Tune in to gain valuable insights and learn how to keep your investment strategy on track despite market fluctuations.

Episode Highlights:

Erik explains the importance of active listening and respecting clients' emotions in financial planning. (3:00)

Dr. Matt discusses learning from Erik about behavioral finance and how irrational behavior can affect financial decisions. (5:32)

Dr. Matt brings up the complexities of the stock market and Erik responds with an analogy comparing it to a highly emotional client. (10:13)

Dr. Matt recounts the alarming news headlines from August 7th that stirred market fears, leading to a broader discussion on media impact on investment behavior. (15:07)

Dr. Matt shares a personal experience of reacting to market news and consulting Erik, leading to a discussion about the proper timing for adjusting investment strategies. (22:32)

Erik discusses the significance of aligning investment decisions with long-term financial goals and not succumbing to short-term market events. (27:10)

Erik emphasizes the commonality of market pullbacks, correcting misconceptions about market corrections and their normalcy. (39:58)

Dr. Matt and Erik discuss the importance of aligning investment decisions with long-term financial goals, not short-term market movements. (42:09)

Key Quotes:

“I think the most successful financial planners are the ones who are good at investor management.” - Erik Garcia

“Making a decision that impacts your long-term investment strategy based on a short-term economic market-driven event is often a poor decision.” - Erik Garcia

“How do fear and alarm influence my decision making? And that can be financially, but in my field, it's often relationally. Fear is a very effective driver of behavior change.” - Dr. Matt Morris

Resources Mentioned:

Dr. Matt Morris

Matt Morris & Associates

Erik Garcia, CFP®, BFA

Xavier Angel, CFP®, ChFC, CLTC

Plan Wisely Wealth Advisors

...more

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By Agency Intelligence

4.7

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