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How we’re investing right now
At Morningstar Investment Management, we talk a lot about what’s knowable and unknowable, important and unimportant. Right now, COVID-19 and its effects on global markets are superlatively important and unknowable. We could spend a lot of time and effort attempting to forecast or predict what might happen. But, instead, we like to focus on what we do know – what is knowable.
Read here (~4 mins) What prior market crashes can teach us about navigating the current one
The circumstances of the current market crash might be unique to the coronavirus pandemic, but they lead investors to wonder: Are such drops normal for equity markets, or is this different?
Read here (~5 mins) Combating action bias: We want to act, but should we?
During times of market volatility, a natural instinct is to stop the bleeding–to take decisive action instead of riding out the storm. When it comes to investing, acting on that desire wont necessarily help. To help ourselves and investors overcome this tendency, let’s better understand what’s happening.
Read here (~2 mins) Fight or flight? When ‘black swan’ events happen…
When unsettling events such as the coronavirus (COVID-19) outbreak and market volatility dominate the news, it’s natural for investors to question and second-guess their investment strategy. As hard as it is to do nothing, it will serve investors best not to flap about in disarray, focus on the facts and remain calm.
Read here Staying the course vs. timing the market
Trying to time the market is tempting when investments are fluctuating, but is it the best strategy? Dan Kemp, CIO EMEA, and Ryan O. Murphy, Global Head of Decision Sciences, comment on why staying the course isn’t synonymous with ‘doing nothing’, and why you can find comfort in a long-term view.
Read here How to navigate clients’ financial anxiety during market volatility
Steve Wendel, Head of Behavioural Science, overviews some key concepts to use with nervous clients to help manage their concerns. Learn how to encourage them away from recency bias and herding behaviour for more stable investment strategies.
Read here