Insights
Find the latest news and insights from TrueShares below.
Don't Get Tricked by a Spooky Market
Emotions can play devilish tricks on even the most savvy investor. For some, their deepest, darkest fears aren’t of ghouls and goblins, but bear markets and bad bets. While fear’s job is to keep people safe, it can also come at a hefty price when it starts to impact investment decisions. Fear casts its spell on the unsuspecting investor, making them behave in ways they might normally not. To defeat this boogeyman, it helps to know what traps are being set forth in one’s path.
Herds, Headlines, and Hoodwinks
Fear can be caused or amplified by what others are doing and saying. When markets are already volatile and an investor is already on edge, a sensationalized headline might just tip them over the edge and make them do something rash. If it seems like everyone else is reacting in a certain way, the investor might go against their better judgement and act impulsively.
Herd mentality and headline risk are just two of the sparks that lead investors to sell in a panic. Panic selling tends to lock in losses that may have otherwise only been temporary had the investor held their assets. Selling in a panic also robs the investor of the market recovery that would likely have erased the losses they panicked about in the first place.
As difficult as it might seem, investors have to remember in these moments that context is key. Markets are influenced by a variety of factors and short-term fluctuations may not reflect the overall health of the investment. Making a knee-jerk reaction out of fear, without looking at the broader context and considering the long-term implication of a market move or particular headline can leave investors worse off than if they’d stayed invested.
Cash in the Crypt
Fear is a two-headed monster. It can cause an overreaction, but it can also cause an underreaction or no reaction at all. Paralysis by analysis, as they say, happens when the fear and overwhelm of making any decisions at all leaves investors stuck. This paralysis might leave them in a portfolio that no longer meets their needs or isn’t equipped to handle the market’s momentum. Doing too much can be a curse, but so can doing nothing.
Then there’s the possibility that the fear of losing money is so great that risk-averse investors keep their money in cash, forgoing stocks altogether. Before the interest rate cut in September, roughly $7.6 trillion was sitting in money market funds. The tight grip on cash this year may partly be due to market volatility and partly due to favorable yields on cash. But the recent cuts and expectations of more this year lead many experts thinking investors will realize some of that cash may be better served in the equity market. Besides, there are a variety of choices on the marketplace these days, many of which are built for the risk-shy investor.
CNN’s Fear and Greed Index indicates the markets are being driven by fear lately. It takes into consideration factors like stock price strength and breadth, market momentum and volatility, and the difference between stock and bond returns, among other factors. The biggest thing investors are afraid of, of course, is losing money. It’s a powerful fear because the pain of losing money is often twice as powerful as the pleasure of an equivalent gain.
But don’t let a spooky market trick you. Stick to the financial plan to defeat the frightful boogeyman.
Thought Leadership,
Straight to Your Inbox
Disclosures
©2025, TrueShares, ©2025 TrueMark Investments, LLC. (“TrueMark”).
Before investing, carefully consider the TrueShares ETFs investment objectives, risks, charges and expenses. Specific information about TrueShares is contained in the prospectus and a summary prospectus, copies of which may be obtained by visiting www.www.true-shares.com. Read the prospectus carefully before you invest.
An investment in TrueShares is subject to numerous risks, including possible loss of principal. The ETFs are subject to the following principal risks: Authorized Participants, Market Makers, and Liquidity Providers Concentration Risk associated with ETFs; Equity Market Risk; Management Risk; Market Capitalization Risk (Large Cap; Mid Cap, Small Cap Stock); Market Risk; New Fund Risk: The Fund is a recently organized, non-diversified management investment company with no operating history. As a result, prospective investors have no track record or history on which to base their investment decision. Additionally, the Adviser has not previously managed a registered fund, which may increase the risks of investing in the Fund.
Depositary Receipts Risk. American Depositary Receipts (“ADRs”) have risks similar to those of foreign securities (political and economic conditions, changes in the exchange rates, etc.) and entitle the holder to all dividends and capital gains that are paid out on the underlying foreign shares.
Individual investors should contact their financial advisor or broker dealer representative for more information on TrueShares ETFs.
Investment Products and Services are: NOT FDIC INSURED / MAY LOSE VALUE / NO BANK GUARANTEE.
All registered investment companies, including TrueShares, are obliged to distribute portfolio gains to shareholders at year-end regardless of performance. Trading in TrueShares ETFs will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.
TrueShares ETFs are bought and sold through exchange trading at market price, not Net Asset Value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
ETF shares may be bought or sold throughout the day at their market price, not their NAV, on the exchange on which they are listed. Shares of ETFs are tradable on secondary markets and may trade either at a premium or a discount to their NAV on the secondary market. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETF’s NAV. Brokerage commissions and ETF expenses will reduce returns.
Fund Intelligence Mutual Fund Industry and ETF Award shortlists and winners are comprised of individuals and firms who have submitted entries or been nominated via the online submission process, as well as through recommendations from leading market participants. Fund Intelligence Mutual Fund Industry and ETF Award judges will use the submitted application material, as well as any uploaded supplemental information, to determine which firm, individual or product they believe to be the most suitable and deserving winners for each category. Fund Intelligence Mutual Fund Industry and ETF Award judges have the discretionary power to move nominations into alternative categories that they think may be more suitable. Fund Intelligence Mutual Fund Industry and ETF Awards were decided by an independent panel of 20 judges with expertise across the asset management space.
TrueShares ETFs (the “Funds”) are registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940. The fund is distributed by Paralel Distributors LLC, Member FINRA. Paralel is not affiliated with TrueMark Investments, LLC. TrueMark Investments, LLC, is the investment advisor to the Funds and receives a fee from the Funds for its services.
TrueMark Investments, LLC is the investment advisor to the Funds and receives a fee from the Funds for its services.
TrueShares ETFs are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this website should be considered a solicitation to buy nor an offer to sell shares of any fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.