3 Tips for Riding Out the Stock Market Volatility
Morningstar Investment Management's Dan Kemp urges investors to ignore the market noise and focus on their long-term goals.
Dan Kemp: Periods of market turbulence can be especially dangerous for investors as they tend to elicit an emotional response and heighten the behavioral biases to which we are all prone. Left uncheck these biases can lead to us making poor decisions which can harm long-term investment returns. We therefore need to find a way to overcome these biases and here are three ways that may help you do this.
First, remember that investment is a long-term pursuit and put all recent price movements in this context. While a 4% fall may feel a lot, it means little in the context of a 10 or even 20-year investment horizon. Second, try to avoid the sensational headlines that can lure you into action. It's normally better to read books than listen to forecasts./p>
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.