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2020 VISION: Time to Take Stock

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COULD WATCHING "SHARK WEEK" INCREASE YOUR ODDS OF SHARK ATTACK? Availability bias can change our perceptions of risk

Behavioral Finance for Everyday Investors

We like to think we invest rationally, but the field of behavioral finance has shown there are social, emotional, and even cognitive factors that can affect our investing decisions. By becoming aware of these unconscious tendencies, we have a better chance of meeting our long-term investing goals.

Today's lesson: Availability Bias

Let's Talk about Sharks

The odds of being attacked by a shark in the U.S. are said to be about 1 in 11,500,000. The odds are clearly stacked in our favor.

While our rational mind knows shark attacks are rare, if there's information available to us that's not only more recent, but more traumatic, it's likely to have a stronger influence on our decisions. This is called "availability bias."

Talk to Your Advisor. It's a great way to take a step back and get an objective opinion. Are you investing to meet your own goals or have your decisions been influenced by availability bias? Your advisor can help you stay focused on your long-term goals and the financial plan you've created to meet them.

  1. Step

    For those still not sure about the stock market.

  2. Walk

    For those who are nervous about timing their re-entry.

  3. Sprint

    And for those ready to "sprint" back into the stock market, there may be some attractive opportunities.

  1. Watch the Video

    A brief overview of 2020 Vision: Time to Take Stock

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