Sticking to the long term investment?
👉Those working in the investments industry generally take a long-term stance when selecting the names to be included in the portfolio.
📈They explain as well to their clients that performance has to be judged on 3 or 5 years basis at least.
🔀They acknowledge that in the short term many things can bring volatility or simply prevent an undervalued company from being discovered by the market.
⁉️And yet often there is a dichotomy between this rational position and the day to day operations. Professionals within the industry spend their days reading market news, following the performance of the different names, sectors, indices and seeing how portfolios are being impacted.
💻🖥Having access to (near) real time data is considered a must.
💻🖥Screens and dashboards with market data are a hallmark of their working environment.
⁉️What do you do then to ensure that the daily, weekly or monthly ups and downs do not cloud your decision making unnecessarily?
⁉️How do you read into this data to grasp what is really relevant longer term without falling victim to anxiety or stress?
⏸Studies show that stress follows in such environments and it can easily impact the decisions of portfolio managers, traders or analysts.
⏹How do you manage clients expectations? We've all seen clients becoming nervous as prices dip, excited to take gains when markets run wild or, on the contrary, pushing for toping up positions.
If these challenges are real, put time in developing your emotional tookit.
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