The Biology of RiskJul 2, 2014 | Wealth Management
During a USA World Cup soccer match, my emotions can sometimes get the best of me. Emotions can be fine during a soccer match, but not regarding your investments. This NY Times article describes the strong reactions our bodies have to risk. However, I believe when you add strong emotions (such as investors managing their own investments) to risk, this can trigger a "panic" like physiological response which may lead to reactionary, poor decision making. This can have catastrophic effects on a portfolio and is why I recommend individuals work with a qualified investment professional or team. Remove the emotion, manage risk and stay disciplined. Have a great day!
Bank of the Bluegrass & Trust Co.
215 Southland Dr
Lexington, KY 40503
Investments offered by Wealth Management Division at Bank of the Bluegrass & Trust Company *Are not FDIC Insured * Are not Bank Guaranteed * May Lose Value*Please do not transmit trading orders or instructions regarding a Bank of the Bluegrass account by e-mail. For your protection, Bank of the Bluegrass does not accept and act on such instructions. Similarly, Bank of the Bluegrass does not accept trading instructions via voicemail, text messages, instant messaging, or facsimile. Please speak directly with your Wealth Management Advisor if you need to give instructions related to your account. The information presented in this blog is general in nature. It is not intended to provide, and should not be relied upon for accounting, investment, legal or tax advice. Investors should consider their individual financial circumstances and the inherent risks of investing prior to making any investment decision.
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