Are Your Emotions Affecting Your Investment Decisions? Ft. Michael Boyle (Ep. 10)
Are fear, regret, or attachment influencing your investment decisions? For long-term investors, avoiding emotional investing mistakes can be just as important as understanding the investments themselves.
In this episode, Eric Lee speaks with Michael Boyle, CFP®, Wealth Manager at Purple Wealth, about how emotions affect investment decisions. Drawing from more than 400 client meetings, Michael shares why investors sometimes hold investments that no longer fit their financial plan. Eric and Michael explain how the overnight test can reveal emotional attachment and why a positive investment outcome doesn’t always mean the original decision was sound. They also explore investing versus speculating and why market volatility isn’t the same as realizing an investment loss. The conversation examines how inflation can reduce your purchasing power even when the dollar amount in your account remains unchanged, along with why reacting to financial news can interfere with a long-term investment strategy.
Eric and Michael discuss:
- How the overnight test can reveal emotional attachment to an investment
- Why a positive outcome doesn’t always come from a sound investment decision
- How market volatility differs from realizing an investment loss
- Why inflation, safety, and certainty depend on your financial time horizon
- And more!
Resources:
- Winning the Loser’s Game
- The Overnight Test, associated with financial planner and author Carl Richards
Contact Eric Lee:
Contact Michael Boyle:
About Our Guest:
Michael Boyle, CFP®, is a Wealth Manager at Purple Wealth, LLC. Over the past two and a half years, he has participated in more than 400 client meetings, where he has developed a deep appreciation for the role emotions play in financial decision-making. In this conversation, Michael shares practical insights on emotional investing, the difference between investing and speculating, market volatility, inflation, and how investors can make more thoughtful long-term financial decisions.
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