No Time For Emotional Investing

If house prices dropped tomorrow would you sell? Probably not.

A well-diversified investment portfolio is a lot like a solid home in a good neighbourhood. It should be able to withstand ups and downs over a long period of time. The big difference between a home and a portfolio is that you can log in every day to track the constantly changing value of your investments. Seeing a dip, especially when markets are volatile, can trigger an emotional response that leads to selling low, a counterintuitive approach.

You may hear that other people are selling their investments or choosing to park their money in cash until life returns to normal. But if your investments are professionally managed, match your risk profile, and put you on the right path to meeting your long-term goals, sticking to your plan may be the best short- and long-term approach.