It's almost Valentine's Day, and I uncontrollably start humming lyrics to Taylor Swift’s "I Knew You Were Trouble." highlighting the turbulent ups and downs you experience often experience in love. 

 

Love is actually more similar to investing than you think. Two weeks ago global financial markets had a short-term sell-off due to the coronavirus epidemic and Brexit concerns which was followed almost immediately by a strong market rebound. Many experts state that financial markets in 2020 will be more volatile than 2019. This type of roller coaster style market conditions will inevitably surprise investors.

 

So, what are the similarities between love and investing?

 

 

1. They both require you to set the goal

 

 

When you are young, you began a relationship perhaps simply due to the whims of your feelings. What you treasured most were purely the surprises and the sweet and happy times with your other half. At that time, you always listened to his sweet talk, enjoyed simple pleasures like sharing an ice cream and even celebrated some bizarre anniversaries together. But after starting your career it is not only happiness that you pursued but also honesty and a type of long-lasting love. You start to expect a commitment to each other, have others put ourselves in their life plans and make decisions with the intention of a future together. If you and your other half don’t always see eye to eye that’s ok. There is no right or wrong when it comes to love. If your goals in love are clear it will better help you find the right partner in life which by far is the most important ingredient in long lasting love. 

 

 

And with investing you also must be clear about what you want to achieve. Some people see investing as their career, others use investing to provide for their children’s future and some people even use investing just to earn a little extra pocket money for themselves. Every investor’s expected rate of return is different so the first step in investing is to set a goal and choose the right one according to your risk tolerance and targeted rate of return. Targeted investment methods can help you plan and set you up for your future easier than you would normally. With your goal in mind you can also more accurately choose investment products that are suitable for you and achieve your financial ideals with greater mastery.

 

 

2. They both require thorough understanding

 

 

If you can say "my husband was my first love" then congratulations! However, most people are still in the stage of searching for love. Finding an ideal partner ultimately can not be determined by appearance alone but depends on the compatibility of each other's personality thereby allowing you to be the truest form of yourself in front of each other. 

 

George Soros, a famous American investor, had a lifetime of love interests. After two failed marriages the lovers around him changed like the clothes in your wardrobe. Soros may have had the ability to clearly read the ebb and flows of financial markets but he lacked such abilities when it came to the heart of a woman. He didn't know what his partners needed and couldn't find someone who could walk hand-in-hand with him through the journey of life. Finally, 8 years later, he married his third wife, a woman 42 years younger than himself. However, is she the right person? Only time will tell but looking at his ‘track record’ it doesn’t look so promising.  

 

 

Investing is the same. It is important to understand the investment products you are buying. You need to look at the performance, judge whether the company you are investing into is credible and then invest in a systematic manner (like in stages). By going purely on the word of others chances are you’ll select an investment portfolio that doesn't suit you. In particular, some investment products that advertise high returns often attract novice investors who don’t know better. Investors that invest into financial products that exceed their own risk tolerance level often struggle afterwards or even lose money in the process. Understanding the market is also very important. Having a considerable understanding of the market can also greatly help you select investment products that are suitable for you and you’ll be much better prepared to face different market conditions.

 

 

3. They both require you to stay rationale

 

 

When in a relationship you will always encounter problems or disputes and people inherently will act more irrational in the face of those whom they are familiar with and care about. Your other half's lack of empathy creates a dysfunctional environment where no matter what you say or do it seems like you are continually working against each other. However, the result of such ‘emotional blackmail’ will only make you grow farther away from each other. A moment where you let your emotions get the better of you can leave behind an indelible scar on your relationship. So with emotional problems we must learn to face and solve them as rationally as we can.

 

 

Investing is impulsive in nature and only by approaching it rationally can we hope to be successful. This situation can be highlighted in the recent market pullback. Even if the market downturn is triggered by the coronavirus epidemic there is no need to panic sell immediately. Financial markets in this particular case rebounded quickly and those who gave into their emotions lost out. The rational thing to do is not to take this current market lightly but keep your emotions in check. The majority of people often are affected emotionally by short-term market fluctuations and make irrational and inaccurate investment decisions as a result. 

 

There are many variables when you embark on your investment journey. To be successful in investing you need rational thinking and substantial investment experience. AQUMON uses algorithms to be 100% objective in their investment approach. It formulates a suitable smart investment portfolio for you based on your risk tolerance and monitors the portfolio performance for you 24/7, allowing you to make a long term stable investment in the comforts of your own home. In a year ahead that may contain more market volatility AQUMON will act as your compass to guide you through these market conditions. 

 

 

Final insight

 

 

Investment is just like love. There is no one set formula. Everyone's pursuit is different but you’ll need to understand the secrets and nuances of the heart to improve your chances of success. 

 

However, investing can be simpler than love! Choose AQUMON, start your automated investment journey and leave more time for yourself to accompany your other half to develop your "formula of love" together.

 

If you haven’t met the other half, don’t worry. Invest for yourself and secure your own future while you are waiting for your “Mr. or Mrs. Return”.

 

 

Your Valentine's gift

 

 

Here's your Valentine's gift: from now till Feb 29, 2020, try our new Basic ETF Series (invest as low as US$1,000) and enjoy $0 advisory fee (until Mar 31, 2020)! Spare more time for your beloved ones!

 

Click HERE for more details!

 

I wish you all a very happy Valentine’s Day!

 

About us

As a leading startup in the FinTech space, AQUMON aims to make sophisticated investment advice cost-effective, transparent and accessible to both institutional and retail markets, via the adoptions of scalable technology platforms and automated investment algorithms.

AQUMON’s parent company Magnum Research Limited is licensed with Type 1, 4 and 9 under the Securities and Futures Commission of Hong Kong. In 2017, AQUMON became the first independent Robo Advisor to be accredited by the SFC.

AQUMON’s investors include Alibaba Entrepreneurs Fund, Bank of China International and HKUST.

 

Learn more in AQUMON APP

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