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When emotionality overrides common sense

All financial indicators are green and yet the Dow Jones lost 5.15% over the last month? In the United States, the economic growth indices show a very strong economy. So what is going on? Logic does not necessarily guide the short-term behavior of stock market indices. Emotionality often dictates the short-term behavior of investors.

Here are some recent examples

  1. Facebook and Cambridge Analytica No one can argue that this use, which is questionable to say the least, could have impacted the Brexit vote in England or the election of Trump in the United States. We are still in the realm of high speculation.

  2. Mr. Trump's 1001 Tweets that play on people's emotions.

  • The imposition of countervailing duties on Canadian aluminum.

  • The ones about the trade war with China,

  • The war of nerves with North Korea,

  • The expulsion of Russian diplomats,

  • The attacks on Amazon and Intel,

In the short term, these Tweets negatively influence the behavior of investors who get scared and cash in their gains.

Our strategy

We have defined with you a unique, long-term strategy based on your situation and your needs throughout your life. We have built it around reliable economic indicators. We strongly encourage you, as I will do myself, to stay the course and not succumb to the emotionality caused by situations that have no long-term impact. Be it Facebook or Trumpitudes.


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