Time is an interesting dimension. It is a fixed measurement, yet our perception of time varies greatly depending on what we are doing.
It has been said that the longest eight seconds in life is riding a bull. For those of us who have never rode one, we will take it as fact, but even so, eight seconds is eight seconds – regardless of what we are doing.
Time seems to “fly” when we engage in fun, exciting or stimulating activities and appears to stand still when scared, anxious or bored. In other words, the things we enjoy in life make it “go” quickly, while the things we dislike seem to last for an eternity.
This suggests that when we engage in desirable activities, such as summer vacation with the family, it may be worthwhile to take a moment to slow down and reflect on the experience. This will allow us to relish the moments and the subsequent memories – which we can call upon during the more difficult times.
Slowing down can also help us make better financial decisions. When information comes at us in an orderly rate, we can process the information just fine and draw logical conclusions. When we get a ton of information all at once, our brain freezes – just like a computer when trying to process many things at once.
When the brain freezes, it can no longer process information and think critically. That part of the brain is offline. If we require a decision right away, the brain will transfer the decision-making to our impulsive brain. That means our decisions will be more influenced by intuition and how we feel rather than thoughtfulness.
At Biondo Investment Advisors, one of the things we enjoy most is helping clients decipher what information is worth considering and what isn’t. It’s our responsibility to filter the stock market noise, making the decisions easier and helping to stay the course of your long-term investment strategy.
Source: ©2021 Behavioral Finance Network. Used with permission