When it comes to long-term investing, the biggest challenge isn’t necessarily the markets – it’s how we as investors react to it. Even experienced investors can make decisions driven by fear, excitement, or stress, especially in fast-moving environments like today. Our Brains Aren’t Built for Long-Term Investing Humans are wired to respond quickly to threats, not to think decades ahead. This leads to common behavioral biases that can hurt performance, such as: Fear: Selling during declines Greed: Chasing hot trends after they’ve already run up Loss aversion: Feeling a small loss more intensely than a similar gain Emotion Often Leads to Buying High and Selling Low There has been research done that has shown that losses feel roughly twice as painful as comparable gains feel rewarding.1 This imbalance often pushes investors to sell too quickly at a loss or hold onto losing positions in hopes of a rebound. Many investors let emotions, headlines, or market noise drive their decisions. This often leads to panic selling during dips and buying back in after the recovery – the opposite of a disciplined approach. In most cases, it isn’t the market that causes long-term underperformance... it’s the emotional responses to it. Volatility Can Make Emotional Decisions Even More Tempting Fast-moving markets can amplify stress and lead to: Selling too quickly Chasing short-lived rallies Constantly tinkering with portfolios These reactions often lock in losses rather than avoid them. Emotions Don’t Just Affect Individuals – They Often Shape Markets When large groups of investors react emotionally, whether through panic selling or euphoric buying, those behaviors can drive market swings that don’t necessarily reflect underlying fundamentals. Structure Is a Great Tool to Help Manage Emotional Decision-Making Consistent and structured processes can help investors stay grounded. The tools below may help keep decisions rooted in strategy rather than short-term emotion: Diversified portfolios Periodic rebalancing Automated contributions A long-term investment plan Your emotions are natural — but they can work against your long-term goals. A thoughtful investment plan can provide structure, clarity, and discipline, especially during uncertain periods. Our goal is to help you stay focused on what matters most and avoid the emotional decisions that can derail long-term progress. Source: 1 “Behavioral Finance in Action: How Emotions Influence Investment Decisions,” Kingsview Wealth, October 13, 2025. Roger Saks, AIF® Managing Director/Investments (212) 328-1680 direct roger.saks@stifel.com Diversification does not ensure a profit or protect against loss. Stifel does not provide legal or tax advice. You should consult with your legal or tax advisor regarding your particular situation. 3 Bryant Park, 3rd Floor | 1095 Avenue of the Americas | New York, New York 10036 Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE | Stifel.com If you no longer wish to receive these types of communications from Stifel, please reply with a subject line of “unsubscribe.” Please note you will still receive electronic communication as it pertains to your account(s). VIEW IN BROWSER