Steven Wagner in The Wall Street Journal: Individual Investors Remain Calm During Market Dip
Following news that the coronavirus epidemic is worsening, stocks from around the globe dived and government bond yields reached record lows. Despite this, individual investors have remained calm, according to The Wall Street Journal. Individual investors have a longstanding reputation for sending sell orders at any indication of a market downturn and then missing out on the market’s subsequent rebound. However, for many individual investors, market dips like this one have become instances to wince at but not panic over, the publication observes.
For better insight on how this volatility is affecting individual investors, The Wall Street Journal recently spoke with Omnia Family Wealth Chief Executive and Co-Founder Steven Wagner. Wagner has found that for most clients, it has been business as usual and everyone is remaining relatively calm. “We haven’t had a single email or phone call about it,” Wagner explained.
One reason for this composure among individual investors is the historical track record throughout the more than decade-long bull market. During this time, the stock market has reliably recovered from other shocks, such as elections and terrorist attacks, demonstrating to investors that it is rarely worth it to sell at the first sign of trouble.
Proper asset allocation is also a significant factor among investors who have remained calm and even opportunistic. A portfolio that aligns with your personal risk tolerance will help avoid losing sleep at night, no matter what the headlines read.