FA Center: How ‘seasonally affected investing disorder’ controls your portfolio decisions

Just like the changing weather can influence mood and productivity, it can also impact investing behavior. Research shows that at the first sign of spring, newly optimistic investors have more risk tolerance. In autumn and winter, daylight decreases and so does our mood, which in turn can cause investors to become more conservative about risk.

These seasonal impulses to buy and sell can be difficult for investment advisers to navigate. With spring now in full bloom, take notice of your clients’ behavior, and respond accordingly. Here are three ways advisers can help ensure that their clients are not making emotional, seasonal investment decisions:

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