2020 has been quite the year for the stock market and investors. The topic of non-emotional investing is becoming a popular one due to the volatility of 2020. Seeing as the United States of America election day is right around the corner, investors are experiencing major jitters. It is wise to read, have conversations with peers and enjoy your favorite news channel. However, in the midst of exploring the news and launching into casual debates, as investors it’s important to remember to follow the math when making decisions.
Be aware of the fact we do not scroll on our phones, fall down internet rabbit holes, and watch tv to be bored. It is natural to seek entertainment. It is all good and well to listen to your favorite anchors and watch segments. However, the minute “primetime” begins to interfere with your market decisions it may be time to take a step back. Revisit financial tools and double check market movements. Make sure your decision making is not based on emotion, but based on concrete numbers.
Will Retirement Plans be Affected by the Next President?
Whoever wins the election, being prepared for change is inevitable. The pandemic and the presidential race has carved a path the United States will be left to navigate for years. This does not point to trouble no matter who ends up in office. The paths leading to retirement will remain relatively the same. As long as plan holders do not make any irrational decisions, their plan should remain right on track. The government will be searching for ways to make up for the money spent through the stimulus package as well as revenue lost from income tax and sales taxes from consumers. As this has been a year where much spending slowed, the government is in recovery mode. All while handling the repercussions of a pandemic.
Non-Emotional Investing with the Right Set of Tools
Keeping emotions intact while investing through the coronavirus as well as the presidential election can be tricky. As human beings we prefer to follow our hearts, but as investors we must follow the charts. We may not be privy to the future of our stock market, but we are equally allowed sets of psychological and mathematical tools which help us manage our emotions.
Psychologically, behavioral finance techniques will save clients much hassle and headache as it removes bias from investing. Mathematically, tools such as the HCM-BuyLine® are designed to help investors avoid emotion based decisions. The HCM-BuyLine® and The 401(k) Optimizer® are put into practice so you can always be the captain of your own ship. The HCM-BuyLine® is the tool which watches the market so you don’t have to. The 401(k) Optimizer® is it’s messenger pigeon. It helps you to decide how your company-sponsored retirement plan should be allocated and rebalanced.
Our Sentiments are Quite Bullish
Before, during, or after the 2020 election, we aren’t here to drag each other down and around. Investing is an exciting job for many and no matter how the market twists and turns, we believe optimism continues to linger in the air. The stock market has made history in many ways this year, and even though the charts continue to go from doom and gloom to happy and spry, we always have faith in a good rally.
That being said, it is easy to be affected by the news or the millions of articles which get released daily. There will be many ups and downs in the stock market. No matter what happens, concrete numbers and the math will always be there to support investors and clients alike. Always feel free to turn to non-emotional tools in the event you are unsure of what to do next. They will display the facts and help guide you toward more prosperous investment practices.