Keeping Your Cool During Market Volatility

When the stock market has a downturn, many investors go into panic mode, selling off parts of their portfolio to avoid temporary drops, and then missing potential gains when it bounces back.

For example, last December the S&P 500 dropped by a whopping 9%, one of the worst Decembers for investing performance since the Great Depression. A dramatic downturn to be sure, but the upside to the story was the day after Christmas it enjoyed its best performance since 2009. Still, the downturn seemed to have more of a negative impact on many investors than the subsequent rebound did.

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