Seasoned investors know how difficult it can be not to overreact to current events, but during particularly turbulent periods in the market, it can be tempting to tinker with your portfolio. But these are the times to stay strong because historically, dips in the market don’t last long and they tend to lead to fantastic gains — as long as you can weather the storm.
This does not constitute advice and advice should be sought in all instances before acting on it.
It’s understandable to be concerned while watching prices fall, that’s your hard-earned money! But don’t let emotions dictate your investment decisions. Even though emotions normally drive regular decision-making, and they will inevitably bleed through to your thought process, it’s important to stay in control of your investments.
Control your emotions
According to research from Barclays half of British investors (50%) have admitted to having made an impulsive investment decision, with two-thirds (67%) admitting regret after the fact. The leading drivers of these choices seem to be excitement (34%), impatience (21%), and finally, fear (16%). Keep a close eye on your anxiety and excitement because they can eventually lead to bad investing habits like constantly checking their portfolios and reacting too quickly and often to market fluctuations. Nearly half (47%) of respondents admitted to feeling anxious about their investments, while two-thirds feel a jolt of excitement in response to their investments.
What led all these investors to make rash decisions? Apparently, social media is highly influential, impacting 32% of people’s choices, with friends and fear of missing out on opportunities following close behind with 31% and 30%, respectively.
Investing opportunities
Feeling your emotions doesn’t necessarily have to be a bad thing. In fact, if you learn to harness your emotions you can apply your passion in a productive way. But if you feel yourself letting emotions rule your decision-making, take a moment to step back and allow yourself to think rationally about your choices.
Being in touch with what you’re feeling makes it easier to manage your emotions. Then you can focus on creating a diversified portfolio that not only takes advantage of market opportunities but will remain strong throughout any volatility that may come your way.
Help to stay the course
Expert advice from specialists with knowledge of and experience with other doctors’ and dentists’ challenges will help you reach your goals, even in the face of market volatility.
Our trusted advisers will provide guidance so you can navigate your investment journey with ease and your emotions in check. For a review of your financial plan and investment strategy, get in touch today.