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How Does Psychology Play into Investing?

Financial Advisor Paul Winkler says we make decisions based on emotions: loyalty, trust, greed and fear when hiring a financial advisor. Winkler has 5 factors to consider when hiring a firm.
OpenLine - 041526 Paul Winkler
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NASHVILLE, Tenn. (WTVF) — Humans make decisions based on emotion. When choosing someone to invest your money you want someone who you trust and is loyal. Your greed to make money and fear of losing it also plays a part. Financial Advisor Paul Winkler says decisions should be made with cognitive reasoning and understanding markets. Winkler wants his clients to understand what he does with investments. He is a firm believer in diversification but warns to look how a company or industry has performed over a 100 year period when looking at Large-cap companies, not just their track record for 10 years.

Winkler and Host Ben Hall talk about the culture shift from the watering down of regulations by government turning investing in some annuities into gambling.

This program was paid for by: paulwinkler.com


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