Making Hasty Changes to Your Portfolio In Response to Negative Press Comments Is Tempting, but It Is Rarely the Right Course of Action
We enjoyed this blog by Joe Wiggins, author of The Intelligent Fund Investor, looking at how our behavioural biases might lead us unnecessarily into action.
For many, the temptation to “do something” and make changes to an investment portfolio in response to new information (in particular negative comments in the news) can be overwhelming.
But tinkering with it is generally not a productive thing to do.
They say that an investment portfolio is like a bar of soap – the more you touch it, the smaller it will become.
If you’ve got a well-diversified, low-cost portfolio, that is aligned to your financial goals and appetite for investment risk, there should be no reason to make regular changes.
If you would like any help sticking to your investment plan, please give us a call on 020 3488 9505.
The value of your investments can go down as well as up, so you could get back less
than you invested.
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