The markets have had a rough first half of 2022, and our natural instinct is to run. But time and time again, we hear that we need to "stay the course."   Why is this so difficult? It's because we are fighting our own brain chemistry!

Behavioral finance takes a look at how our psychology affects how we invest. Key to this is loss aversion - we feel twice as much pain losing $20 as we do pleasure finding $20!  A bad experience can significantly impact a person, a corporation, even a country's ability to take risks going forward.   And the market changes we're experiencing this year are coming on the heels of the volatility we experienced in COVID!

Michael explains that there are three parts of the brain that activate this "loss aversion" phenomenon.  And they relate to fear, anxiety/prediction, and disgust/avoidance.  It's not our fault we want to pull out of the market - we're just wired that way!

Stacey and Mike close by talking about the importance of working with a financial advisor who understands behavioral finance, and the need to put a plan in place that considers market volatility ahead of time.

To receive your free Arc of Life Report, or to talk to Michael, Stacey, and the team at Optivise Advisory Services, give them a call at (855) 378-1806, or visit our website, https://www.artofwealthunbroken.com/