Mind Games: Attention Allocation
You may be familiar with the term asset allocation, which is how we divide up our assets (stocks, bonds, cash etc.). Attention allocation is how we divide up our attention.
Paradox of Abundance
The paradox of abundance states that there is a tradeoff between quantity and quality. The greater the quantity of a good or resource, the less its quality.
As investors, we are faced with a limitless quantity of market commentary and predictions, much of it conflicting. We are often left wondering which one will actually transpire.
And stock prices are constantly fluctuating, providing an abundance of fleeting data. We may go from positive and bullish one day to negative and bearish the next.
Such an abundance of ever-changing and conflicting information can make an investor’s head spin. Which information do we pay attention to? And what do we ignore?
Allocating Your Attention
Many investors focus their attention on price fluctuations, the news story of the day and predictions…all things that are unpredictable and uncontrollable.
It is much better to focus on your plan, remaining disciplined, and enjoying those things that matter most to you in life. Those are things that are completely in your control.
This is why we are here. We will help you remain composed and focused on those things that will help you make wise decisions, especially during times of heightened uncertainty and concern.
If you’re considering working with us here at Mosaic, we invite you to learn more about who we serve and how we help them. You can also contact us with any questions you have.
By Anthony C. Williams, CWS, ChFC, MRFC, CLU | Investment Advisor Representative | President & Founding Partner of Mosaic Financial Associates & Orthopaedist Advisory Group | Securities and advisory services offered through Cetera Advisors LLC, Member FINRA/SIPC, a broker/dealer and a Registered Investment Advisor. Cetera is under separate ownership from any other named entity.
©The Behavioral Finance Network. Used with permission.
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