News and Commentary

Investing is no Place for Emotions and Knee-Jerk Reactions by Scott Montgomery, CLU, ChFC

The equity markets provide opportunities for investors to build wealth, but not without risks. Before putting any money into the public markets or any investment vehicles, you should take the time to consider your long-term goals, risk tolerance and time horizon. When these factors are accounted for in a well-thought-out strategy, you may be better prepared to ride out market swings and avoid the potentially devastating consequences of making emotionally charged financial decisions.

The problem with these knee-jerk reactions is that they are based on emotions rather than facts. They represent fears, anxiety, greed, overconfidence and/or desires rather than goals. Successful investors, however, understand that the movement of the markets is based on long-term historic trends and short-term influences. They are practiced in the art of self-control and keeping their eyes of their long-term investment and retirement savings plan.  When market losses mount, they do not cash out. They understand that those short-term losses are only on paper, and, depending on the assets in their portfolios and their time horizons, they instead recognize the market declines as an opportunity to buy.

Sticking to an investment strategy is not easy, even one that is financially sound. However, maintaining diligence and staying on course may be best accomplished with the support and insight of experienced financial advisors. They understand the importance of a diversified investment portfolio that meets an individual’s goals and time horizons and that may help reduce the impact of market volatility.

The professionals with Provenance Wealth Advisors work with individual investors, families and businesses to navigate through complex risks in order to build and preserve wealth for multiple generations.

About the Author: Scott Montgomery, CLU, ChFC, is a director with Provenance Wealth Advisors, an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors and Accountants, and a registered representative with Raymond James Financial Services. For more information, call (954) 712-8888 or email

Provenance Wealth Advisors (PWA), 515 E. Las Olas Blvd., Ft. Lauderdale, FL 33301 (954) 712-8888.

Scott Montgomery is a registered representative of and offers securities through Raymond James Financial Services, Inc., Member FINRA/SIPC.

 Raymond James is not affiliated with and does not endorse the opinions or services of Berkowitz Pollack Brant Advisors and Accountants. PWA is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc., and Provenance Wealth Advisors.

 This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the advisors of PWA and not necessarily those of Raymond James. You should discuss any tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investments mentioned may not be suitable for all investors. Asset allocation and diversification do not ensure a profit or guarantee against loss.