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Dear all,

I am wondering if you have ever thought that a great amount of investment decisions is based on pretty much the same thing that makes a toddler “explode”, because something didn’t go according to its plan: EMOTIONS.

Money fuels two very specific emotions, namely Fear and Greed. We are afraid to lose it or afraid we default payments and we get greedy when we come across quick profit possibilities or simply because we enjoy earning money, and then more money and then even more money.

CNN Money came up with the Fear & Greed Index which measures these two primary emotions that influence investors (see Investopedia).

📉Fear = a lot of selling. 📈Greed = a lot of (often senseless) buying.

Right now the Index is at the same level as one year ago: “Extreme Fear”, so we are experiencing a big sell-out because Investors keep hearing bad news after bad news.

One year ago that extreme fear went to extreme greed (stocks hit new all time highs) within just one month !! Just like a toddler going from cool to volcano mode in no time. Crazy!

Of course, the world is in quite a different geo-political place right now and this index should only be a reference among many when you invest.

But what I am trying to say is: investing will always be a journey connected to emotions and having them under control is probably one of the toughest things to achieve when investing. I have become way better at it, but am still learning!

A simple Sparplan and sticking to it can tackle all of that. The problem is if you start getting really into that topic and want to broaden your investment horizons 😇

Are you keeping cool in these turbulent times?

Take care!

Your André

PS - as always, spread the word and share the link love