Three Factors Sabotaging Your Long-Term Investment Strategy

Making emotional decisions in the moment and listening to what non-experts recommend are sure ways to thwart yourself.

A man looks at stock prices on his smartphone.
(Image credit: Getty Images)

Market volatility like what we have experienced over the past few years can make even the most seasoned investors anxious. Many of my clients are already asking me, “What should I do?” as the next presidential election approaches — even though it is a little over a year away. When you take into account the pandemic, global geopolitical uncertainty and our divisive domestic political reality, it’s no wonder clients become nervous and look to buy or sell based on their fear, or on what friends, co-workers or “experts” in the media or on social media recommend.

Financial advisers can play an important dual role as coaches and therapists who can calm investors when they become anxious and prevent them from making hasty decisions that could cause long-term harm. Below are three of the most common influences that investors can fall prey to when they let their emotions take over:

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Bob Peterson, J.D.
Senior Wealth Advisor, Crescent Grove Advisors

Bob is a Senior Wealth Advisor with Crescent Grove Advisors | Portfolio Advisory Services. Specifically, Bob focuses on portfolio advisory services for clients with liquid investable assets of $1 million to $10 million. In addition to portfolio management, Bob works to coordinate his clients’ entire financial plan to address tax planning, cash flow, retirement and risk management.