The volatility we saw in May and June may have rattled some investors, and if you sold in May and went away, you missed a pretty good July. In this month’s Market Roundup, our capital market strategists provide some guidance to help prevent you from being psyched out by the markets.
“A lot of investing is driven by psychology and perceptions. Fundamentals such as earnings, interest rates, and the economy matter, but investors’ perceptions of those fundamentals matter all the more. Perceptions are not always correct. Often, when you see large or erratic moves in the markets, it’s probably due to dramatic changes in perceptions, not dramatic changes in the fundamentals. The May and June moves in the equity markets might have made some investors emotional or nervous. The idiom ‘Don’t get psyched out!’ seems to be good advice for any investor.”