How does narrow framing hurt investors and how does your approach help?
An inability to see the big picture is common in the complex financial markets. All humans have a tendency to fall prey to numerous common missteps that are symptoms of narrow framing.
According to The Wall Street Journal:
"Many of the financial mistakes people make are caused by a fundamental shortcoming: They can’t see the big picture. In behavioral economics circles, this is known as “narrow framing”—a tendency to see investments without considering the context of the overall portfolio. Many people are vulnerable to it."
THE BIG PICTURE
The CCM Market Model uses hard data to continually assess the big picture. The model's output allows us to quickly understand the market's current risk-reward profile in an unbiased and objective manner, while taking short, intermediate, and long timeframes into account.