What Happens When Emotions Take Over?
Markets don’t move in a straight line – and neither do our emotions.
When markets are rising, optimism can quickly turn into excitement and confidence. When markets fall, that confidence can turn into anxiety, fear and even panic.
The challenge is that our emotions can be strongest atexactly the wrong time.
Investors often feel most confident when markets have already risen significantly — and most fearful after they have already fallen.
That’s why one of the hardest parts of investing isn’t choosing investments. It’s staying disciplined when markets become uncomfortable.
Successful long-term investing isn't only about what you own. It's also about how you behave while you own it.
Where Advice Can Make a Difference
The value of deciding not to sell during a market downturn can be difficult to see. There’s no line on an investment statement showing the impact of a decision you didn’t make.
In fact, research from Russell Investments identifies behavioural coaching as one of the greatest potential contributors to the value an advisor can provide.
That value may be the conversation that prevents a short-term market decline from becoming a long-term financial decision. It maybe reminding you why your portfolio was built the way it was, revisiting your time horizon and goals, or simply providing reassurance that your plan is still doing what it was designed to do.
Behavioural coaching is just one part of the value of advice. Tax-smart planning, personalized advice, and ongoing portfolio management all work together toward the same goal: helping you make better financial decisions and keeping your plan on track.
That becomes especially important when markets are difficult and emotions are running high. We don’t want emotions driving the decision. We want your plan driving the decision.
As always, we’re here to answer your questions, talk through any concerns and provide perspective when you need it.
Source: Russell Investments, Value of an Advisor.
The market cycle of investor emotions is for illustrative purposes only.
This document is provided for general informational purposes only and offers a high-level discussion of certain topics. It is not intended to constitute, and should not be relied upon as, legal, tax, estate planning, investment, or other professional advice. You should obtain independent professional advice tailored to your specific circumstances before making any decisions. iA Private Wealth Inc. and its advisors do not provide legal or tax advice.
This material has been prepared by Jessica Perry Senior Wealth Advisor with Adamson Wealth Group at iA Private Wealth Inc., and does not reflect the views or opinions of iA Private Wealth Inc. Although the information is derived from sources believed to be reliable, its accuracy and completeness cannot be guaranteed and it can change at any time. This document does not constitute an offer or solicitation of any kind and may not be applicable to all individuals.
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