Investors as a whole tend to act on impulse and often volatility will see investors rush to sell.
When your investments form a well diversified, low cost portfolio you will be in the best position. Holding an appropriate asset allocation, that is aligned with your willingness and ability to bear risk during periods of volatility, is key.
It is important to understand that uncertainty and volatility is a natural part of investing, Sticking to the goal and ignoring the noise will ultimately lead to a better investment experience.
Dimensional fund advisers explain it brilliantly in this short video. – Watch their video here
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