The New Investing Paradigm: Mindfulness not Competition

By Peter Cole, LCSW, ChFC

Advances in investment theory have dovetailed nicely with ancient wisdom to present investors with a new and exciting paradigm for investing. These advances, known as Modern Portfolio Theory, were developed by primarily by Nobel prize winning economist Harry M. Markowitz. Modern Portfolio theory emphasizes the importance of disciplined investing that focuses on proper asset allocation, rather than on trying to pick winning stocks, or timing the market. Asset allocation is generally defined as the allocation of an investor's portfolio among a number of "major" asset classes. Markowitz and others in the field of Modern Portfolio Theory have taught us that it is much better to create efficient, disciplined investment portfolios than to try to beat the market.

The way in which asset allocation dovetails with ancient wisdom is that it turns our focus inward rather than outward. It focuses us on our own investing behavior rather than on an endless chase to try to outsmart the market with “hot stock tips”, “market timing” and other such lures. Once we have determined an asset allocation that is appropriate for our risk tolerance, then our work is to stay centered and disciplined, to hang in there with our asset allocation strategy, and not get swept up by the “hot tip” of the day.

The new paradigm is that our focus is on a sense of centeredness, mindfulness, and discipline with regard to our investing. We don’t need to be in a competitive frame of mind to be successful investors. We don’t need to outsmart others. Instead, we enter into investing with the positive view that even as markets go up and down as they will, over the long haul, a maintaining a proper asset allocation is a sound strategy. We become less focused on the daily ups and downs of the market, and stay centered and mindful, aware that wise investing is a long-term project.

Insight Financial Group Offers Comprehensive, Holistic, Financial Planning Services

Portfolio Management
Life, Long Term Care & Disability Insurance
Estate Planning Consultation
Financial Psychology Consultation

To see more articles, click here.

Schedule an appointment now to meet with Peter



	Brought to you by Insight Financial Group
		FREE Newsletter: The True Self - True Wealth Connection - A Humanistic Perspective on Money". HOME FINANCIAL PSYCHOLOGY CONSULTATION WHO WE ARE BOOK - Mastering the Financial Dimension of Your Practice Peter and Daisy's Book for Mental Health Professionals FREE REPORT: "Discover the hidden connection between your money script and prosperity." SCHEDULE AN APPOINTMENT	The New Investing Paradigm: Mindfulness not Competition By Peter Cole, LCSW, ChFC Advances in investment theory have dovetailed nicely with ancient wisdom to present investors with a new and exciting paradigm for investing. These advances, known as Modern Portfolio Theory, were developed by primarily by Nobel prize winning economist Harry M. Markowitz. Modern Portfolio theory emphasizes the importance of disciplined investing that focuses on proper asset allocation, rather than on trying to pick winning stocks, or timing the market. Asset allocation is generally defined as the allocation of an investor's portfolio among a number of "major" asset classes. Markowitz and others in the field of Modern Portfolio Theory have taught us that it is much better to create efficient, disciplined investment portfolios than to try to beat the market. The way in which asset allocation dovetails with ancient wisdom is that it turns our focus inward rather than outward. It focuses us on our own investing behavior rather than on an endless chase to try to outsmart the market with “hot stock tips”, “market timing” and other such lures. Once we have determined an asset allocation that is appropriate for our risk tolerance, then our work is to stay centered and disciplined, to hang in there with our asset allocation strategy, and not get swept up by the “hot tip” of the day. The new paradigm is that our focus is on a sense of centeredness, mindfulness, and discipline with regard to our investing. We don’t need to be in a competitive frame of mind to be successful investors. We don’t need to outsmart others. Instead, we enter into investing with the positive view that even as markets go up and down as they will, over the long haul, a maintaining a proper asset allocation is a sound strategy. We become less focused on the daily ups and downs of the market, and stay centered and mindful, aware that wise investing is a long-term project. Insight Financial Group Offers Comprehensive, Holistic, Financial Planning Services Portfolio Management Life, Long Term Care & Disability Insurance Estate Planning Consultation Financial Psychology Consultation To see more articles, click here. Schedule an appointment now to meet with Peter
Securities offered through Securities America Inc., a Registered Broker/Dealer Member NASD/SIPC and Advisory Services offered through Securities America Advisors Inc., an SEC Registered Investment Advisor, Peter Cole, Representative. CA Insurance Lic #0D04931. Our representatives are licensed to offer securities products in CA, CT, GA, MA and WA and are licensed to offer insurance products in CA. Our representatives may only transact business in a state if properly licensed in that state. If you are not a resident of one of the above states we cannot provide individualized responses or follow up contact that involves the effecting of transactions until properly licensed in your state. Insight Financial and Securities America are unaffiliated.