There is nothing quite like downside volatility in the financial markets to test investors’ long-term staying power. Media sensationalism and investors’ access to their portfolio values tend to “turn up the volume” on the “voices” that call attention to the pain and fear of short-term losses. Successful long-term investors are able to tune out the hype, maintain their long-term perspective, and keep their asset allocation in harmony with their financial goals.
The Vanguard article “Putting market volatility in perspective” provides some helpful reminders that successful long-term investing is “a rational, not an emotional pursuit.”
For the full text, click here.