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Behavioral Finance & Investing

Posted June 2, 2023

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Do you tend to think more with your head or your heart? Are you driven more by emotion or logic? If you enjoy taking personality tests like Myers Briggs, Enneagram, or the Strength Finders quiz, you may have determined this about yourself a long time ago.

It can be important to know which way you tend to think so that as you approach decisions, you can be aware of your blind spots, remind yourself to look at the whole picture, and maybe even ask someone who thinks differently than you for their opinion.

You may especially want to consider this when looking at your investment strategies.

If you tend to only rely on your heart, your emotions may tempt you to change your investments when things seem scary, when in reality, the risk may be worth the reward.

Does this tug between the head and the heart sound familiar? We understand it can be risky, especially in a volatile market, to ignore your emotions and stick it out.

The human mind, a masterpiece sculpted by countless years of evolution, harbors an intriguing element called the amygdala. This component is constantly on high alert, detecting danger, whether it’s the imminent attack of a predator or the potential loss of all your money. However, This biological trait proves to be a stumbling block in the investing world. It can lead you to perceive patterns that aren’t truly there, prompting you to sell when buying is the prudent move, or purchase when the wise choice would be to sell. This underlines a fascinating intersection of our inherent biology and behavioral finance.

Managing your portfolio and choosing when to invest and sell are tough decisions, but it’s not one you must make on your own. You can partner with a financial advisor who holds an unbiased opinion and can help you make informed decisions.

By working with a financial advisor, you can take emotion out of the equation regarding your investment strategy. As another benefit, by working with a financial advisor, you’re working with someone whose job it is to know the ins and outs of the market, to understand and implement the best strategies, and who can clearly see the line between emotion and logic to help you make the best decision for your personal situation.

However, keep in mind that not all financial advisors are created equal. Choosing the right financial advisor is important and should not be taken lightly.

When you choose to work with a fiduciary like Thayer Financial, you can trust that the team is working with your best interest in mind 100% of the time. Thayer Financial does not receive any kickbacks, no commissions, and receive no incentives for the work they do. You can trust that what they’re telling you has also removed emotion from the equation and is simply the best move for you personally.

So, when you’re at a loss, feel like your emotions are not in control, and when you are at your wit’s end, it’s time to call the team at Thayer Financial.

Take the emotion out of the equation and watch your investment strategies soar. Make your appointment today with the experts at Thayer Financial by visiting https://www.thayerfinancial.com/contact/


Thayer Financial, L.L.C. (“Thayer Financial”) is a registered investment adviser offering advisory services in the States of North Carolina, Tennessee, Texas and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. This website’s presence on the Internet shall not be directly or indirectly interpreted as a solicitation of investment advisory services to persons of another jurisdiction unless otherwise permitted by statute. Follow-up or individualized responses to consumers in a particular state by Thayer Financial in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or according to an applicable state exemption.

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Thayer Financial, L.L.C., unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to other parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.


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