Periods of market volatility should not prompt emotional reactions from "summary" of All About Asset Allocation, Second Edition by Richard Ferri
During periods of market volatility, it is crucial for investors to remain rational and avoid making emotional decisions. This is because emotional reactions can often lead to poor investment choices that may have long-term negative consequences. When faced with fluctuations in the market, it is important to remember that volatility is a normal part of investing and should be expected. Investors should have a clear understanding of their investment goals and risk tolerance before making any decisions. By having a well-defined investment plan in place, investors can avoid making impulsive decisions based on short-term market movements. It is also important to focus on the long-term outlook of the investment portfolio rather than reacting to temporary market fluctuations. One way to avoid ...
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