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Waterloo Chronicle | Thursday, November 24, 2022 | 14 waterloochronicle.ca Black Friday specials ....... Don’t Delay WOW = Best rates in over 25years! lyr- 5.32%* 5.36%* 5.37%* 5.38%* 5.48%" Optimize Wealth Management 2yr- Syr - 4yr - Syr - interest! 729 Belmont Ave. W. Kitchener 519-744-3020 * 800-361-6631 HB OPINION STOCK MARKET VOLATILITY IS EMOTIONAL ROLLER-COASTER PETER WATSON Column There's a reason why the ups and downs of the stock market can leave you depressed. as to do with hu- man behaviour. Investors value gains and losses differently. A loss has more signifi- cance to an investor than of an equal For example, iffor one month your portfolio in- creases in value for half the days and decreases in value by the same amount for the other half, then nothing has changed. emotionally you have suffered because the days your portfolio de- clines in value are diffi- cult on you emotionally. Understanding emo- tional behaviour has be- come an important part of understanding human behaviour when we in- vest. Prof. Daniel Kahne- man, a psychology profes- sor at Princeton Universi- ty, won the Nobel Memo- rial Prize in Economic Sciences in 2002 for his contribution to behaviou- ral economics. His research includes the "loss aversion theo- ry." That is the basis of what is described in this column. How can this under- standing assist us with in- vesting? We should appreciate that we are subject to emotional reactions when investing. It can prepare you for the times your nerves might be on edge during a volatile or declining market. That won't necessarily dictate how you react dur. ing volatile times, but hopefully it would inform any decisions you make. Peter Watson is regis- tered with Aligned Cap- ital Partners Inc. (ACPI) to provide investment advice. Investment prod- ucts are provided by AC- PI. ACPI is a member of the Investment Industry Regulatory Organization of Canada. The opinions expressed are those of the author and not necessari- ly those of ACPI. Only investment-related prod- ucts and services are of- fered through Watson Securities of ACPI. Wat- son provides wealth man- agement services through Watson Investments. He can be reached at www.watsoninvestment- S.com. STAG SHOP adulb - |store NOVEMBER 25" - 30", 2022 BLACK FRIDAY 25% OFF EVERYTHING - NO RESTRICTIONS +50% OFF SELECT BRANDS SEE IN-STORE FOR DETAILS GSHOP @OO@ad|STAGSHOP.COM @