Resisting the Urge to React When Headlines Wreak Havoc
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Financial markets enjoyed broad gains during the first quarter of 2023 — but not without significant volatility. Stubborn inflation, layoffs, bank failures, and another Fed rate hike, were just a few of the events that dominated headlines during the quarter.
Top trending topics in finance news coverage Jan 1 – March 31
Source: Google Search Trends Finance Category, Babbl
- Behavioral science shows that people (investors) are, by nature, prone to rash decisions based on emotion. Last quarter, we needed to look no further than our daily news feeds for emotional triggers.
- While it’s impossible to entirely remove emotion from the decision-making process, resisting the urge to change your investment strategy during short-term volatility is often the key to longer-term investment success.
- At Dana, we believe volatility creates an environment conducive to researching and owning strong relative value investments at good prices.
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