The Potential Benefits of Staying Invested

The Effect of Letting Emotions Guide Decision Making

Volatility can be problematic to investors. First, there is the psychology of losing money–even professional investors are susceptible to making ill-timed decisions in the face of losses. Second, investors who bail when times get tough typically reinvest too late into a recovery. Investors who stayed the course would have been better off than those trying to time the market.

Over a lifetime of investing, volatility will make a significant difference in your clients’ net worth, so taking the time to prepare for it now by staying invested is well worth the effort.

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