Why holding your nerve when the going gets tough could pay off in the long term.
2018 was a challenging year for investors with money in shares and investment funds. Stock markets around the world suffered from turbulence as a result of economic and political uncertainty, ranging from the US’s increasingly protectionist trade policies to the Brexit negotiations.
Monique Wong, senior portfolio manager at private bank Coutts gives her tips for dealing with volatile markets.
2018 saw two corrections – defined as a fall in value from a previous peak of 10% or more – on major global markets, whereas in 2017 there were none.
For investors seeing markets fall it can be tempting to sell in the hope of avoiding the worst of any losses. But this approach is likely to be the opposite of a productive strategy, according to Wong.