“The greatest discovery of my generation is that human beings can alter their lives by altering their attitudes of mind.”
– William James (1842-1910)1
In 2023, A Gallup Survey found that 61 percent of Americans reported owning a stock, including any stated ownership in a 401(k) or IRA.2 Of the Americans who are invested, many do not have a clear investing philosophy or strategy.3 This can leave investors susceptible to the Wall Street bullies who stand to make a profit from investors’ lack of knowledge or financial novice.3 And while the nearly 40 percent of Americans who are not invested in the stock market at all may feel a sense of security from the Wall Street bullies, they also may be relinquishing the opportunity to be a successful investor for their family’s financial future.
The Investor’s Dilemma
A common state of being for the average investor is one of anxiety, confusion, doubt, and fear. Today, with ongoing wars and threats of war, an impending recession, market volatility, and 24/7 news broadcasting fear and reason to panic, the world can be an overwhelming place for investors. Fear sells, greed gets clicks, and panic spreads like wildfire. In the midst of all this, many Americans have watched as their retirement funds have devaluated and found themselves wondering if they can maintain their lifestyle.
Many Americans now find themselves questioning if their children will be better off than their parents and are asking, “Is the American Dream still attainable?” Fear of the future is an essential element in the investor’s dilemma. This fear can make investors easy prey for making imprudent and rash decisions around their portfolio. Fear may not show up in obvious ways and often lingers in the subconscious. It can be easily identified by its symptoms: loss of sleep, decline in health, happiness, relationships, or work performance.3 Any of these symptoms can be early warning signs of the investor’s dilemma.
Standing Up to the Bullies
Investors experiencing pain and fear about the future understandably want an easy way out. If they have not been trained and developed with prudent investing principles to have confidence in their long-term investing strategy, it is easy for them to look for “quick fixes” that promise to deliver them from their current situation.
The Wall Street Bullies – those in the industry who can profit from taking advantage of investors – know this, and often prey on investors’ weaknesses. Bullies come in many different forms and can take shape to appeal to the insecurities of investors. From prognosticators to con men to gurus, investors should beware of those out to destroy their dreams. Today, where investment options abound – each promising to be easier-to-use and deliver alluring returns – investors should be more vigilant than ever to help protect themselves from the exploitation of the financial industry. To stand up to the bullies, investors should stay alert and ready with an bold battle plan to help protect their financial future and investing peace of mind.
Forging a Better Way
At Matson Money, we are committed to training and developing investors with the tools and discipline to not be swayed by the traps of the industry when faced with the investors dilemma. Instead, we are educating investors in the science of investing, a prudent and disciplined approach to investing based on Nobel Prize-winning academic investing principles and empirically tested research. We help investors follow three simple rules: own equities, diversify, and rebalance. “We don’t know where the next 20% is going, but historically, we know the next 100% move is up,” says Mark Matson, Founder and CEO of Matson Money.
The Investors’ Dilemma is an emotional and psychological paradigm that, if left unchecked, can destroy portfolios and investors’ American Dream. But, with the help of an advisor coach who understands your True Purpose for Money® and life’s goals, you can stay committed to your financial goals and have confidence in your long-term investing strategy. Investors will continue to be confronted by the investor’s dilemma and the Wall Street Bullies will continue to prey on investors’ weaknesses, but investors can be armed with the tools and knowledge to stand up to the bullies and fight for their dreams.
DISCLOSURES:
This content is based on the views, opinions, beliefs, or viewpoints of Matson Money, Inc. This content is not to be considered investment advice and is not to be relied upon as the basis for entering into any transaction or advisory relationship or making any investment decision.
All of Matson Money’s advisory services are marketed almost exclusively by either Solicitors or Co-Advisors. Both Co-Advisors and Solicitors are independent contractors, not employees or agents of Matson.
Other financial organizations may analyze investments and take a different approach to investing than that of Matson Money. All investing involves risks and costs. No investment strategy (including asset allocation and diversification strategies) can ensure peace of mind, guarantee profit, or protect against loss.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS
- James, William. Pass it On. Retrieved 21 June 2024 from https://www.passiton.com/inspirational-quotes/3623-the-greatest-discovery-of-my-generation-is-that.
- What Percentage of Americans Own a Stock? Published May 24, 2023. Retrieved 21 June 2024 from https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx#:~:text=U.S.%20Stock%20Ownership%2C%20Annual%20Trends&text=Sixty%2Done%20percent%20of%20U.S.,52%25%20in%202013%20and%202016.
- Matson, M. (2013). Main street money: How to outwit, outsmart & out invest the wall street bullies. McGriff Pub.
