Investor emotions can have a detrimental effect on portfolio performance, according to a study by The Embark Investor Confidence Barometer:
- Impulsive decision-making can result in an annual loss of 2%.
- 45% of financial advisor clients have “strong opinions” on investment allocations.
- 63% of advisors say they are “regularly” surprised by the choices their clients make about their investments.
- 47% of advisers say that their clients’ biggest mistake is allowing the news to influence them too much.
- Two-thirds of clients say an advisor is helpful for avoiding knee-jerk decisions.
Philip Teale is a MCIM marketer with over 10 years’ experience working with financial advisors – helping them gain new revenue and clients using online channels and AI-powered workflows.