Part 6/8:
When faced with market volatility, Vanguard outlines several practical steps to consider:
Tune Out the Noise
First and foremost, reducing exposure to constant market news can alleviate stress and allow for clearer thinking. Overexposure to market fluctuations can often lead to ill-informed emotional reactions.
Reassess Asset Allocation
If market movements are causing significant anxiety, it may indicate that an investor's risk tolerance does not align with their current asset allocation. Reassessing this allocation after experiencing losses can provide insight into necessary adjustments that result in more comfort during future market fluctuations.