For investors that are anxious about the market volatility, investing legend and Vanguard founder Jack Bogle has a very good advice: “Just stay the course. Don’t do something, just stand there.” By speculating and responding to the current market turmoil, investors can hurt the return of their portfolio in the long run. Miranda Marquit on personal finance site Money Ning points out that loss aversion and overconfidence lead to investing mistakes. “Take the recent market volatility for example. I know a few guys who were scared of the downturn and moved some money into cash in February, only to see the market zoom back up a good 10% in the last four weeks. The worst part is that these people don’t really track their performances, so they will likely do this over and over again. There’s a reason why we urge everybody to stay the course. Doing nothing is actually not easy, but it’s often the most profitable non-action you can ever take.” Stick with your investment policy statement and stay the course. (moneyning.com)
Avoid Investing Mistakes By Doing Nothing
