The stockmarket level of volatility has been very quiet for many years. In fact, the level of movement has been at historical records for it’s plain sailing consistency.
It’s no surprise that with a return of volatility it has resulted in heightened media attention and renewed anxiety for many investors.
While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing.
Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.
Dimensional have published a very short video (1 min 18 seconds) that’s worth watching by clicking here.
The video is accompanied by further information down the page that guides you through intra-year movements over history and how reacting when these events occur can negatively impact your outcome.
If you do have any questions or concerns, please get in touch. Email or call us on (02) 8539 7233.