They move their funds to cash or term deposits and then brag at barbecue’s that they ‘got out’ prior to the downturns. I see it a little bit like gamblers who tell you about their wins but never their losses.
Here’s a couple of articles by Axa and Vanguard to illustrate the concept of timing in rather than timing markets. There is a lot of data supporting these concepts but I feel it’s when we are experiencing volatility such as the current situation it is an opportunity to make sure we refocus.
In practice we need to review our investment goals and objectives and objectively look at what we are trying to achieve. We need to focus on the long term nature of growth investments and get past the short term volatility and ‘noise.’
Do not make major changes to long term strategies at the drop of a hat and make sure that your investments have a level of risk that you are comfortable with.
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