Russ Koesterich, Chief Investment Strategist for BlackRock has provided three tips on investing rationally during periods of volatility after saying that recent low market volatility will end. Firstly, he notes the increased behaviour of investors to follow others in their investment decisions, leading to bubbles and crashes. Investors may also trade excessively amidst the higher difficulty of judging whether past investment decisions were correct, hurting portfolio performance net of fees. Lastly, other individuals may engage in the flipside and be paralysed by the status quo and not act due to the fear of potential losses which loom larger in times of volatility. (VIEW LINK)
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