Investing based on emotions or instincts is a difficult issue.
So challenging that an entire field, Behavioural Finance, examines how investor psychology and emotions affect investment decisions.
Recently I read an article where the author believes that financial planners prefer clients with little investment knowledge. That way, it is easier to sell them whatever you want.
Yes, there are financial planners, brokers, etc., that operate this way. But in my experience, good financial planners would rather deal with well-educated investors.
And often the reason relates directly to emotional investing. (more…)
