History shows that even in peak periods, emotions can outdistance the most performing investment plans. Business behavior though, discards why negative events have even a more influence to divert an investor’s rational way of thinking.
“Nowadays, there are still a lot of investors considering equities through their emotional filter, rather than having a rational algorithm”, said James Francis Nixon, Financial Services Executive at Voth Nixon Group. The markets’ ups and downs created confusion among investors’ logical thinking. Everyone remembers the significant market drop. However, most individuals lost their focus on steady rise back up. Most of them remained conservative and haunted the “safer” investments. Sadly, having interest rates at historic lows, these strategies proved to have a regressive trend. Most of them got a bordering or even negative real return on the long term achievements”, Nixon added.
Voth Nixon Group’s 2020 Vision emphasizes how emotion and human behavior interferes with investment decisions. Having a lack of rational thinking can lose some important facts from investors’ side regarding worldwide positive market trends. Voth Nixon Group uses a flexible approach, having straightforward strategies to guide investors switch their portfolio with a convenient allocation to fixed income and equities.
VNX’s Vision analyzes financial perception and investors’ behavior on the way they take decisions and hold firm to their beliefs:
• Perspective Possibility: The decision-making is highly influenced by personal key factors which have more relevance for individuals. In other words, this can indicate that what happened in 2008 with the financial crisis, has a greater impact than the upper trend within the following years.
• Loss Animosity: Having a former loss creates an emotion stronger than a present or future gain. The craving to avoid any market loss has led many investors to shift the stock portfolios to low-yielding cash correspondents such as Certificates of Deposit.
• Congregation: An intuitive tendency to follow the crowd becomes a weakness for investors that get caught up in what everyone else is doing. This is an important aspect of losing the vision of a long time goal for an independent investor. Nevertheless, this can pull an investors money out at a wrong time and live him on the sideline while market grows.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
Address: International Commerce Center (ICC Tower), 1 Austin Road, West Kowloon, Tsim Sha Tsui, Hong Kong.