Attention Economy


Wednesday, August 3, 2022

Emotions, Biases, and Stock Market Investing

The stock market can be an emotional roller coaster. It shouldn’t be.
https://www.vox.com/even-better/23281067/investment-risk-tolerance-stock-market-volatility-economy
Emily Stewart notes:
Investing is inherently risky, no matter how supposedly safe or speculative the asset, and not everyone is equipped to handle risk equally. Finding the right risk-reward mix is a tricky balance. There’s also a difference between risk capacity, meaning the risk you should take to meet your financial goals, and risk tolerance, meaning how much risk you can deal with emotionally. You don’t want your retirement account to keep you up at night. You also don’t want to keep your money in cash your whole life and then run out of money once you actually retire because you never invested it. 

Related: