Market Downturns: Uncomfortable, but not uncommon
AFTER TWO SOLID YEARS OF STRONG RETURNS, equity markets are currently experiencing a significant downfall in 2022. While it’s always possible equity markets could turn upward quickly, an equity downturn experience can leave an extensive impact on the psyche of even the most seasoned of investors and consequently impact how they manage their money. During downturns, some investors become too traumatized to put their cash to work in the markets. Others can react by aggressively day trading and making rash investment decisions. Neither of these behaviors are beneficial for long-term financial success. For long term financial success, incorporating a proper process-oriented approach for managing investments is typically one of the better ways to avoid similar missteps.