Projecting the Investment Horizon: Don’t Let Emotion Get the Best of You
By Michael J. Searcy
If you’re like the majority of the investing public, you may think this diagram depicting the emotional rollercoaster of investing is a great representation of how you feel these days. The diagram takes us through a simplified market cycle starting with a period leading toward strong performance (a bull market) and then falling into a period of weak performance (a bear market), then back to an upturn, thus showing the cycle is never ending. Fluctuation through these cycles can leave investors with feelings of euphoria when things seem to be going great, despair when they’re going bad, and optimism when it seems like poor performance is on its way back up again.