How to Be a Fearless Investor


Recorded at the Market Counsel Summit. Presented by: 

Advisorpedia interviewed Riskalyze Co-Founder and CEO Aaron Klein at the MarketCounsel Summit in December, 2021.

"To be a fearless investor, you have to be equipped and ready to make great short term decisions about money as you go. And the problem is, is it's very choppy in the markets, things get volatile. 

We saw that in the 2008 financial crisis, we saw it again with the 2020 pandemic crash. And we've seen it in a number of times, short periods of time where we've had volatility. And what investors really have to do is understand how to react to risk appropriately. Because if you can do that, it transforms you from a fearful investor, who makes bad short term decisions into a fearless investor who makes really great short term decisions.

And ultimately, investors don't make long term decisions, they just make one short term decision at a time to stay the course stick with it. And that ultimately, those things are the inputs that a great financial adviser can use to deliver an amazing long term financial outcome.

Getting an investor to focus on the long term view is really all about helping them understand their portfolio and what's normal for their portfolio and and how to react to risk appropriately. And ultimately, it's when you when you can understand what's normal for your portfolio. It really empowers you to give up that fear that's driving you as humans.  We're wired to take action when we sense the rustling in the in the in the brush. And it's really understanding what's normal for your portfolio is is what can really lead you to be able to stick with it even when you're feeling a little bit stressed about the markets."

Resources: FP Transitions | Riskalyze

Related: How to Be a Fearless Advisor

Related: How to Be a Fearless Entrepreneur