The pandemic crisis has illustrated why investors should
hold their nerve when stock markets fall.
It's been a tumultuous year for stock market investors. A
bull run that had lasted nearly 11 years came to a shuddering halt
in early February as the COVID-19 pandemic hit. What followed was
the shortest and sharpest correction in stock market history; but
quick action by governments and central banks then saw a rapid
bounce back.
When stock market shocks happen, the risk is that investors'
emotions take over. They might panic and sell at the first sign of
trouble. Or they might attempt to time the market and buy low,
hoping to sell for a profit when prices recover.
But losing your nerve or trying the time the market can prove
very costly. And this time was no different because, just like
previous stock market crises, some of the biggest market moves - in
either direction - happened in just a few days. Whether or not you
are invested on those days can make a big
