Cybersecurity • Investor Behavior
Monthly AIRE Perspectives – September 2023
Dear Friends and Valued Clients,
Please see below for The MAP – Monthly AIRE Perspectives for this month.
SAVE THE DATE: Exclusive AIRE Advisors Webinar with Fidelity’s Cybersecurity Expert
On November 2nd at 1pm PT, we will hold our 4th Quarter Client Event. While the topic might sound boring, it is one that is not only interesting, but a session that will be filled with action items you will want to take to secure your phone, computer and more. Further details to come next month, but in the meantime, please save the date!
This Month’s Topic: A Deeper Dive Into Investor Behavior
You have probably heard us – on many occasions – discuss the importance of the topic of Behavioral Finance, which is the study of investor biases and behaviors, and their effects on portfolios. Given how often we discuss these topics, we thought it might be worthwhile for you to see some perspectives and data from other sources. Here are two brief write-ups and a great video we want to share with you.
The first is Dalbar’s 2023 Quantitative Analysis of Investor Behavior report, which highlights the consistent underperformance of the average equity and fixed income investor versus the respective equity and fixed income index. The bottom of page 5 highlights the differences over time, from 1 to 30 years, while page 7 discusses some of the behaviors that led to this underperformance. The Dalbar report is a very well-known, data-based report that shows the effects of emotions on long-term performance. Read more.
The second is an excellent 2-page whitepaper: Volatile Markets: Don’t Rely on Headlines for Guidance on When to Invest. Read more.
Finally, we wanted to share an insightful video on investor behavior, recently shared with us by a dear friend and client who had come across it on YouTube: Watch Video.
We hope you will take the time to review these, and remember the importance of not allowing our emotions to drive our investing decisions.
Once again, we would like to thank you for your trust and loyalty, and look forward to speaking with you in the upcoming month.
The commentary and opinions expressed in our articles on this page reflects the personal opinions, viewpoints and analyses of the AIRE Advisors, LLC employees writing the article. The articles on our website should not be regarded as a description of advisory services provided by our firm or performance returns of any AIRE Advisors, LLC’s clients. Any past performance discussed in these articles is no guarantee of future results. The views reflected in the articles are general in nature and made to provide education about the financial industry. These views and opinions are subject to change without notice. Any mention of a particular security, sector, and related performance data is not a recommendation to buy or sell that security or in that sector. Our firm manages client accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the articles. To determine what kind of investments may be appropriate for you, please consult your financial advisor prior to investing. Also, please note that all investing involves risk and the possible loss of principal capital.
In addition, AIRE Advisors, LLC may provide links hyperlinks for your convenience to websites produced by other providers of industry related material. Accessing websites through links directs you away from our website. Our firm is not responsible for errors or omissions in the material on third party websites and does not necessarily approve of or endorse the information provided. Users who gain access to third party websites may be subject to the copyright and other restrictions on use imposed by those providers and assume responsibility and risk from use of those websites.