Here's how making poor investment choices is like watching classic thriller ‘Jaws'

Many investors make choices based on recent events, regardless of how irrational it may be.

Here's how making poor investment choices is like watching classic thriller ‘Jaws'

Psychological impulses are normal, but they can also be harmful. Would you like to take a long ocean swimming after watching Jaws? Universal Studios Home Entertainment released the Jaws 30th anniversary edition DVD on June 14, 2005.

In 2019, it returned 32% annually. "People must understand that recency is normal and hard-wired," Fitzgerald, Moisand Fitzgerald Tamayo's founding principal, said. Fitzgerald stated, "If I am stung twice or more by a bee I will not return to that area." Fitzgerald explained that a portfolio of this type would have a broad exposure to equity markets via large, mid and small cap stocks as well as foreign shares and possibly real estate. Investors can achieve this by purchasing low-cost exchange-traded or index mutual funds that track each of these segments. Fitzgerald explained that the asset allocation - or share of stocks and bonds - is typically influenced by factors such as investment horizon, risk tolerance and risk taking ability. A young investor who has three decades until retirement will likely have at least 80 to 90 percent of their portfolio in stocks.