Without the guidance of an advisor, the self-medicating investor might overreact to short-term market volatility by selling some of their investments.
When international stock returns lag, investors may feel tempted to double down on their home market. Historical data suggests the long-term benefits of diversifying globally.
The notion that sellers can outnumber buyers on down days doesn’t make sense. The number of buyers must always equal the number of seller. What the newscasters should say, of course, is that prices adjusted lower because would-be buyers weren’t prepared to pay the former price.
The path to success in many areas of life is paved with continual hard work, intense activity, and a day-to-day focus on results. However, for many investors who adopt this approach to managing their wealth, that can be turned upside down.