Why Following the Crowd is Dangerous When it Comes to Investing

Money Guy Show

Brian Preston, CPA, CFP®, PFS and Bo Hanson, CFA, CFP® | Fee-Only Fiduciary Advisors

Education, Retirement, Moneyadvice, Investing, Savingmoney, Personalfinance, Business

4.6 • 2.8K Ratings

🗓️ 20 July 2018

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

When it comes to investing, do you ever find yourself reacting to the media headlines? If you spend even one day listening to financial news updates, you could be convinced that you need to do something drastic to combat the doom and gloom that's perpetuated by industry 'gurus.' Fear is often the driving emotion behind bad financial decisions, and we don't want you to total your financial life because of such peer pressure.

You (and any other investor) are told on a daily basis by the financial media to follow the herd and invest your money in this or that, or worse... sell when things seem scary. In this week's episode, we talk about how even when there's good news the media somehow wraps it up in negativity. Don't be misled in your financial life.

For more details visit our show notes on our website:

https://www.moneyguy.com/2018/07/when-you-invest-following-the-crowd-can-be-dangerous/

Transcript

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0:00.0	Avoiding that investment peer pressure, how do you not become part of the herd and not making good decisions with your finances?
0:08.8	It's Brian Preston, the money guy, restoring order to your financial chaos, retirement, investing, taxes.
0:17.6	You've got financial questions, he's got financial answers. It's Brian Preston, the money guy.
0:24.7	Welcome, money guy family. Here's the thing.
0:28.9	Peer pressure, as we all know from all the after-school specials, do they even do after-school specials anymore?
0:35.6	I think they're probably stream on them or something. I don't think they're called after-school specials.
0:39.0	Did you have after-school specials?
0:41.0	I don't know.
0:42.7	You did. This is not incredibly familiar to me.
0:45.4	See, after-school specials were designed in my time period, because I'm over.
0:51.8	Back in my day.
0:53.8	Where it was, try to tell you about some of the perils, some of the dangers of being a teenager
0:59.2	in decisions you could make in one of the biggest ones.
1:01.4	Is it like this is your brain? This is your brain on drugs?
1:03.7	No, I was kind of a PSA that they did on drugs.
1:06.3	I mean, but you could have had an after-school special on avoiding drugs.
1:10.6	But a lot of them had to do with peer pressure, because let's face it, we all know, and I have a teenage
1:15.6	daughter. It's clear that we are now separating from the parents, the family unit being the
1:23.6	primary influence of her life, and now the peers are having more and more.
1:29.4	More and more influence. I started thinking about in my own life, what was a horrible decision
1:35.5	that I made that almost caused harm? It was a fork in the road that changed my life forever.
1:45.1	Because normally peer pressure is like a negative thing. It causes you to do something you probably
	...

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