How Should Investors Approach Heightened Market Volatility?
As I have mentioned repeatedly on this blog, we are currently experiencing heightened volatility in the financial markets.
In the realm of behavioural finance, there is a term ‘action bias’ which refers to one’s inclination to do something in times of stress and uncertainty (and there has been a lot of that in the financial markets recently). Some investors may be asking, ‘do we make drastic changes to our investment strategy by moving 100% into cash for fear of losing more?’