Behavioral finance plays an important role in long-term investment success. We behave as we do in large part because we are affected by our emotions.
Emotional Investing and How to Avoid It
2022 has delivered some record drops in both the stock and bond markets. In the month of September alone, the S&P broke below the previous June closing low, declining 1.03%. Similarly, the Dow dropped another 1.11%. This type of volatility can be incredibly stressful for investors, and understandably so, but it should not be a time to panic. Instead, it’s often a sensible time to lean in.