don’t let fear drive investment decisions

THis arTiCle was wriTTen by edward JOnes fOr use by sHeri MarsHall, yOur lOC al edward JOnes finanCial advisOr, COurT yard OffiCes, selinsgOve, Pa. edward JOnes, MeMber siPC investment-related fear can manifest itself in a few different ways:

In the past year, we’ve seen some big swings in the financial markets. This volatility may make you feel as if you have little control over your investment success. But the truth is, you do have more control than you might think — as long as you don’t let fear guide your decisions.

• Fear of loss – Some investors may emphasize avoiding losses more than achieving gains. Consequently, they might build portfolios they consider very low in risk, possibly containing a high percentage of certificates of deposit (CDs) and U.S. Treasury securities. Yet, a highly conservative approach carries its own risk — the risk of not achieving enough growth to stay ahead of inflation, much less meet long-term goals such as a comfortable retirement. To reach these goals, you’ll want to construct a diversified portfolio containing different types of assets and investments — each of which may perform differently at different times. Your objective shouldn’t be to avoid all risk — which is impossible — but to create an investment strategy that accommodates your personal risk tolerance and time horizon.

• Fear of missing out – You’re probably familiar with the term “herd mentality” — the idea that people will follow the lead of others for fear of missing out on something. This behavior is responsible for fads or the sudden emergence of “hot” products, and it’s also relevant to investing. In fact, herd mentality may contribute to sharp jumps in the financial markets as investors drive up prices by buying stocks to avoid being left behind. And the same may be true in reverse — when the market starts dropping, skittish investors may accelerate the decline by selling stocks so they, too, can get out before it’s too late. Buying or selling investments should be considered as needed to help advance your long-term financial strategy — not in response to what others are doing.

• Fear of the unknown – Some investors fall victim to “familiarity bias” — the tendency to invest only in what they know, such as local or domestic companies. But this behavior can lead to under-diversified portfolios. If your portfolio is dominated by just a few investments, and these investments are fairly similar to each other, you could experience some losses when the inevitable market downturn occurs. To help reduce the impact of market volatility, it’s a good idea to spread your investment dollars across large and small companies in a range of industries and geographical regions. And that’s just on the equities side — it’s also wise to consider further diversifying your portfolio by owning bonds and government securities. (Keep in mind, though, that diversification can’t guarantee profits or protect against all losses.)

• Fear of admitting failure – Some individuals don’t like to admit when they’ve been wrong about something, and they may continue the same failed activities, hoping for eventual success. This behavior can be costly in the investment arena. Sometimes, a particular investment, or even an investment strategy, just doesn’t work out, but an investor is determined to stick with it — even if it ultimately means considerable financial loss. Don’t let his happen to you — if it becomes apparent you need to change your investment approach, move on to something better.

Fear can hold us back in many walks of life — but don’t let it keep you from making appropriate investment moves.

herb cheese-stuffed garlic burgers

Backyard barbecue season begins in spring and continues through summer and, where the weather allows, into fall. Barbecues are a perfect summertime soiree, as they're usually laid back affairs and make use of the pleasant weather.

While it's fun to expand your culinary horizons over the open flame of a grill, it's important that you never forget the basics, especially when entertaining crowds who are no doubt looking forward to grilled burgers. Giving the masses what they want is good hosting, but you can still try your hand at a little experimentation when serving burgers at your next backyard barbecue. The following recipe for "Herb Cheese-Stuffed Garlic Burgers" provides the best of both worlds.

IngredIents

2 pounds ground beef chuck, 85% lean

2 tablespoons chopped garlic

1/2 teaspoon kosher salt

1/4 teaspoon ground black pepper

3 ablespoons herbed garlic cream cheese, such as Boursin

6 hamburger buns, split Oil for coating grill grate

dIrectIons

Using your hands, mix the beef, garlic, 1. salt, and pepper in a bowl until well blended; do not overmix. Using a light touch, form into 12 patties no more than 1/2-inch thick.

Put a portion (about 1 1/2 teaspoons) 2.

of cream cheese in the center of each of the 6 patties; top with the remaining patties and press together, taking care to seal the edges well. Refrigerate the burgers until the grill is ready. Brush the grill grate and coat it with 3. oil. Put the burgers on the grill, cover and cook for 9 minutes, flipping after 5 minutes, for medium-done (150 F, slightly pink). Add a minute per side for well-done (160 F).

To toast the buns, put them cut-sides 4. down directly over the fire for the last minute of cooking.

If serving the burgers directly from the 5. grill, serve on the buns. If the burgers will sit, even for a few minutes, keep the buns and burgers separate until just before eating.

There are many different takes on potato soup, but most classic Irish recipes feature potatoes, stock, leeks, and onions.

1. IngredIents

Start to finish: 40 minutes (20 minutes active) | Servings: 6

1 tablespoon unsalted butter

1 onion, diced (about 1 1/4 cups)

1 leek, white and light green parts minced (about 1 1/4 cups)

1 celery stalk, diced (about 1/2 cup)

1 garlic clove, minced (about 1/2 teaspoon)

1 quart chicken broth

2 yellow or white potatoes, peeled and diced (about 2 cups)

1 sprig fresh or 1/2 teaspoon dried thyme

2 cups chopped escarole (about 8 ounces)

1 cup diced country ham

1/4 teaspoon salt, or to taste

1/4 teaspoon freshly ground black pepper, or to taste

dIrectIons

Heat the butter in a soup pot 1. over low heat. Add the onion, leek, celery, and garlic; stir until they are evenly coated. Cover the pot and cook until the vegetables are tender and translucent, 6 to 8 minutes.

Add the broth, potatoes and 2. thyme. Simmer the soup until the potatoes are tender enough to mash easily, about 20 minutes. Remove the thyme and discard. Puree the soup. Return the soup to the pot and bring to a simmer. Add the escarole and diced ham 3. and simmer, 12 to 15 minutes, or until all the ingredients are tender.

Season with salt and pepper. 4. Serve the soup in heated bowls.

This recipe for Molten Chocolate Cakes is a mix of spongy cake and warm, flowing custard. Dress up the cakes even further with berries and whipped cream or chocolate shavings.

IngredIents

1 package (6 squares) Baker's Bittersweet Baking Chocolate

10 tablespoons butter

1 1/2 cups powdered sugar

1/2 cup flour

3 whole eggs

3 egg yolks

dIrectIons

Grease six custard cups or 1. souffle dishes. Place on baking sheet. Microwave chocolate and 2. butter in a large microwavable bowl on high for 2 minutes or until butter is melted. Stir until chocolate is completely melted. Add powdered sugar and 3. flour; mix well.

Add whole eggs and egg yolks;

4. stir with wire whisk until well blended. Divide batter evenly among 5. prepared custard cups. Bake at 425 F for 14 to 15 6. minutes or until cakes are firm around edges but soft in the centers. Let stand 1 minute. Run small knife around cakes 7. to loosen. Carefully invert cakes onto dessert dishes. Garnish as desired. Serve 8. immediately.

Tip: batter can be made a day ahead; pour into prepared custard cups. Cover with plastic wrap; refrigerate. when ready to serve, uncover and bake as directed.