My friend Tony described the current state of things as “moving through molasses.” It’s a fitting description for things. Everything takes longer right now. Life just feels hard. People react to that in different ways. Some of us get angry. Some of us get sad. Did you know that this (your mood) can affect your decision making?
Schlomo Benartzi and John Payne wrote about this in a recent Wall Street Journal article (How Covid-19 May Be Unconsciously Affecting Your Financial Decision). They say sadness may make you more pessimistic and impatient. That matters if you’re deciding when to start collecting Social Security Benefits (a decision that doesn’t get put on hold for the pandemic).
Anger can make you risk-seeking. Can you afford to invest in that risky marijuana company? Maybe not, but you might be more inclined to try if you’re really upset. Interesting, right?
How do you combat these emotions? Slow down and do some self-reflection. Acknowledge your emotional state. Consider if you’d react differently if you were in a different state of mind. Imagine you were giving advice to someone else about the issue you’re considering. Talk through your issue with someone else.
Let me know if I can help.
About the Author: John O’Connor
John has more than ten years experience as an Investment Advisor. He focuses on devising and maintaining portfolios that meet individuals’ needs, investment research, and investment strategy. John has been recognized as a “FIVE STAR wealth manager” by Twin Cities Business Magazine 2016-2020.Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. CTW gathers its data from sources it considers reliable. However, CTW makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.