Be mindful of reactions to the market

by | Jan 21, 2019 | Uncategorized

Janet W. Mercadante

Is this time different? While those of us who have been investing for decades have experienced many tumultuous markets, each and every time volatility strikes, so does fear.

I’ve learned a lot about investor behavior through the years, and I know how closely emotion is tied to our money. The challenge lies in the fact that we don’t make our best decisions when guided by our emotions.

Confirmation bias also plays a big part in how we react to the way the markets move. We look for good news that reinforces up markets, and we grab on to negative news as the markets fall.

It’s very difficult to keep perspective as you see your account balances drop. And yet…the market was buoyed by the December jobs numbers that far exceeded expectations. Workers’ wages are accelerating. There is some good news out there that belies all the pessimism and fear. There will always be headwinds (areas of concern) as well as tailwinds (areas of optimism) as we look toward the future and try to anticipate the direction of the markets. While short-term prognostications are sometimes a lucky guess, we remain confident in the long-term growth of the markets.

Is this time different? Time will tell, but we don’t think so.

Janet W. Mercadante is a financial advisor and senior vice president with The Dale Mercadante Riggan Financial Group of BB&T Scott & Stringfellow. She may be reached at 757-446-6802 or

The opinions expressed are solely those of Janet W. Mercadante and do not represent the opinion of BB&T Scott & Stringfellow. This material is presented for general information only and is not intended to provide specific advice or recommendations for any individual. To determine what investments may be appropriate for you, consult with your Financial Advisor. Past performance is no guarantee of future results. BB&T Scott & Stringfellow is a division of BB&T Securities, LLC, member FINRA/SIPC. BB&T Securities, LLC, is a wholly owned nonbank subsidiary of BB&T Corporation. Securities and insurance products or annuities sold, offered or recommended by BB&T Scott & Stringfellow are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may lose value.

By Janet W. Mercadante