Rockbridge Named #81 on CNBC's Top 100 Fee Only Wealth Mgmt Firms List
Jun 26

Do You Suffer from “Narrow Framing”?

by Rockbridge Team

Oftentimes, many investors get caught up in short-term results rather than looking at the big picture. This is known to behavioral economists as “narrow framing,” or “a tendency to see investments without considering the context of the overall portfolio.” Unfortunately, this idea can lead to many missed opportunities for investors.

Narrow framing can cause investors to either take too little risk or too much risk. People often get scared by daily market swings and keep their money in a bank account. On the other hand, people may invest in something considered risky without taking their collective portfolio into account.

According to this Wall Street Journal article discussing narrow framing, you can avoid these mistakes by checking your portfolio less often. Another suggestion is to aggregate your financial accounts by consolidating at one location, or by using software to display all your accounts in one place. This allows you to view your portfolio holistically, which can help to assess your overall risk exposure.

At Rockbridge, we help our clients invest for the long-term big picture. We come up with a portfolio in line with your risk tolerance and goals, and help you maintain a steady strategy throughout the ups and downs of the market. We can even help report on all of your accounts – even the ones we do not manage directly. It is our goal to help you avoid the trap of “narrow framing,” and become a disciplined investor. We will be here with you through it all!

 

You Might Also Like

Other articles filed under Investing

New York State Office of Unclaimed Funds

February 8, 2019
Over the summer, we had a client ask if there was a place to look for existing accounts or funds they or family members may have accumulated and forgotten about over the years. That sparked Julie’s memory of the New...
Continue Reading

The Reward of Tuning Out 11 Years of Noise

January 22, 2019
This recent market downturn has many investors drawing parallels to how they felt during the infamous 2008 financial crisis. The last 11 years have been a roller-coaster ride for investors. Right after seeing market highs in late 2007, investors experienced...
Continue Reading

2018 Market Insights

January 18, 2019
2018 was a woeful year for investing. All major stock market indexes were down, bonds enjoyed a year-end rally to finish flat, and commodities such as gold and oil fell. Seeing all asset classes drop in unison is unusual and...
Continue Reading

Invest Like You’re Driving, Drive Like You’re Investing

January 14, 2019
I’ve been watching people drive all my life. I’ve been an individual investor and an investment advisor guiding clients for more than half of my adult life.  I’m a curious soul and during a recent trip from Syracuse to Atlanta,...
Continue Reading

Quarterly Market Commentary – January 2019

January 11, 2019
Stock Markets December’s market reminds us that risk is real – even after the uptick at the end of the month, a global stock portfolio is down about 15% for the quarter and 12% for the year. Technology stocks (Amazon,...
Continue Reading

‹ Back to Blog Home

getting started is simple

315.671.0588 info@rockbridgeinvest.com Schedule a meeting Sign Up for Our Newsletter