The world’s attention seems to have shifted away from financial markets and onto the Rio 2016 Olympics. The event is spectacular – a chance to view athletes competing in the culmination of years of training and discipline. It is awe inspiring and climatic. What can we learn from these athletes as we think about our financial decisions?
Lilly King’s viral video of her finger wag strikes an intrinsic chord with many. The idea that hard work and uncompromised discipline can bring the win resonates with so many of us. Can this love of pure competition and athleticism teach us about our portfolio and financial industry? Absolutely. The financial industry has struggled with personalities caught red-handed breaking the rules. Many educational programs both at the collegiate and professional level mandate the integrity and ethics of participants. The trust of financial systems is foundational much like the integrity of the Olympics. If rule-bending is permitted, participation will inevitably suffer.
Discipline and integrity are powerful in many areas of life. Your portfolio is no exception. As you watch the remaining events of the 2016 Olympics, consider your own ability to consistently approach your portfolio with discipline and from a long-term perspective.
Why this may be important for you:
The primary reason for investment discipline is to eliminate bad behavior. When it comes to your portfolio, discipline removes emotion from the decision-making process and replaces it with a rational investment strategy based on fundamentals and sound research.
If you don’t have discipline with your portfolio, talk to a fiduciary adviser to find out how a disciplined approach to managing your finances will may benefit you.
Published: August 10, 2016
Author: Bethany Muensterman, CFA
Phone: (812) 602-6307
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