This is the most recent article published in ColoradoBiz Magazine written by our president, Kevin McNab. Many of our clients receive their information about the markets from the news media who have a direct interest in making stories compelling. While a compelling story drives interest and fear, it can be embellished or flat out wrong. It is important for investors to make sure they understand the facts and not make investment decisions based on stories told by the media. This article takes a look at some of the stories that drove the stock market down at the beginning of the year along with the story of an investor that did not learn from prior mistakes.
Stories drive the stock market. Stories evoke fear, passion and excitement which influence human behavior. Stories can also have two different viewpoints, and the storyteller gets to decide how they will spin their story. The media knows dramatic stories drive sales whether it is news, sports or finance. People make emotional investment decisions based on stories without sifting through the facts or using past experience. This leads to mistakes, lost money and regret…Read More!