There’s a real need for investors to evolve away from the inherent urge to run, investments in hand, from scary headlines, the dour-palooza of bear market commentators, and adopt the support of someone who can separate the fly shit from the pepper in all this media noise.
Human beings inherited a type of panic button in the centre of our heads – like an adrenaline-induced trigger that urges us to run away at the first hint of trouble. It’s a genetic build that probably saved our species when animal skins were everyone’s attire, and one that can now decimate investments through knee-jerk reactions to scary financial headlines.
Surprise announcements, like today’s move for a snap UK general election, play havoc with what is already brittle stock market investor sentiment. It’s been that way for over eight years now – a near inexplicable emotional state in light of the record breaking market highs, and the relative health of the slow-burn economic recovery that’s been with us since March 2009.
The belief in the idea of instant success and impending disaster is one that’s easily influenced by; fear-inspiring articles, the urge to seek safety in asset classes that don’t actually provide any, falling to victim to well-named products that sound good but don’t really mean anything, and becoming an armchair investor following celebrity TV analysts whose dire investment predictions are borderline comedy.