These are some of the top mistakes investors typically make. Dan Hunt from Morgan Stanley gives his suggestions for what to do instead.
Key quotes
“Selling into a falling market ensures that you lock in your losses. Instead, do this: Take the long view. If you don’t need cash right away and have a well-researched, diversified portfolio, realize that downturns ultimately are temporary.”
“Going to cash and staying there. Instead, do this: Investors who have more cash than their long-term strategy calls for because they sold during the market slide should look to close that gap and get invested.”
“Overconfident and making poor choices. Instead, do this: In times of market uncertainty, you don’t have to figure out what to do next on your own. Find a Financial Advisor.”
“Digging a deeper hole trying to make up for losses or bad choices. Instead, do this: Proactively take advantage of current opportunities, which can often run counter to those instincts.”
“Forgetting to rebalance. Instead, do this: If you’ve decided on a rebalancing plan, stick to it.”
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