How often do market corrections turn into entrenched bear markets? Not very often. In fact there have already been six market corrections since the current bull market started in 2009.
Concerned about volatility in your equity portfolio? Trying to time the markets probably isn’t the answer. Data from Morningstar shows that, on average, investor returns lag fund returns.
One of the biggest challenges in investing is to stay focused and on course. Investors must look at the markets from a historical perspective for broader context, and to better understand why it is important to stay the course during both calm and perilous markets.
You wouldn’t be human if you didn’t fear loss. But smart investing can overcome the power of emotion by focusing on relevant research, solid data and proven strategies. Here are seven principles that can help fight the urge to make emotional decisions in times of market turmoil.