Approaches that promote a more sustainable society and economy align to a given client’s personal view—and it’s important for an advisor to understand each client’s objectives and preferences.
Technological innovation in the financial services industry has helped make investing more attainable for U.S. households, allowing for broader ownership of individual stocks, mutual funds, ETFs, and a variety of other financial products. However...
People often use simple mental shortcuts, also called heuristics, when they make everyday decisions. But can these rules of thumb improve financial well-being? We studied commonly used rules of thumb in four financial categories (saving, spending, investing, and debt management).
Expecting massive, short-term stock price increases is speculation, not investing. At Morningstar Investment Management LLC, we believe recent investing behavior, perhaps exacerbated and amplified by social media, is concerning. Here's why we think this behavior highlights the value of working with an investment professional for sound, long-term financial planning.
Without a doubt, the ongoing global pandemic has us re-imagining many aspects of our day-to-day life. But should investors change how they think about investing or what they can expect from their portfolios? Marta Norton, CIO for the Americas, talks about finding opportunities, protecting on the downside, and how we bring the two together when building portfolios.
With so many of us Americans working and learning from home during the pandemic, it led us to ask, “How are we doing investing from home?” Here we’ll offer a few pro tips for making the most of this unusual time.
Risk preferences are an important part of the financial planning process, but it needs to be considered against goals. Goal setting is where the magic happens. Risk capacity, risk required and risk reactivity are all pivotal inputs in a goals-based framework.
Even in the best of times, investing can be challenging. Ryan Murphy, Morningstar Investment Management head of Decision Sciences, discusses how, in difficult times, it can be helpful for investors to take pause.
Market dips and dives can feel like punches at times, and all investors need to balance emotions like fear and regret with decision-making. Hear insights on what investors can do for themselves to avoid decision pitfalls.
Behavioral Finance – Actionable Insights for advisors to help investors battle biases, avoid chasing returns, buying yesterday’s winners, and extrapolating a string of short-term wins indefinitely into the future