While President Franklin D. Roosevelt wasn’t talking about investing when he famously said “…the only thing we have to fear is fear itself,” he was right on the money when it comes to our portfolios. It turns out that worrying about volatility is one of the biggest issues we face when it comes to investing and saving for retirement.
And that fear of seeing our portfolios bounce around in the short term could be costing us seriously in the long run.
Getting over our worries, taking them head on and planning for them is a must if investors are to succeed with their long-term goals.
We have had low volatility for a long time now. Read more about it here.
The Sheer Thought of Losing Money
No one likes to open up their brokerage statement and see the value of their portfolio drop. But it does happen and pretty frequently in the short term, especially if you’re logging on every day to see the account value. Nevertheless, despite the market’s long ability to rise, people are downright fearful of the short term. And according to investment manager Franklin Templeton, this aversion to loss is sweeping across various generations.
