Cassaday & Company, Inc. Principal Christopher Krell writes valuable commentary for CNBC on emotions and investing.
“After a lifetime of counseling clients to separate their emotions — such as fear, greed and overconfidence — from their investment decisions, I’m still standing my ground. The goal in my counsel, and that of my co-workers in the firm, is to have clients understand what we have known all along: We are unable to predict the market’s outcome, so don’t fall into the trap where you think you can make predictions or you’ll ultimately increase the probability of losing money. It becomes a self-fulfilling prophecy whereby the most predictable outcome is that emotionally charged, irrational financial decision-making leads to more money being lost than during the temporary market declines that often occur and that have always become recoveries.”