Insights and strategies to help investors hold their nerve
An awareness of history and a disciplined investing approach through dollar-cost averaging could tune out emotions and impulses that can be damaging in the long run
[SINGAPORE] Whipsawing markets have been testing investors’ patience and confidence. Are you holding your nerve?
Many strategists have advised a risk-off stance, and have told investors to refrain from buying the dip. Yet a strategy of dollar-cost averaging is the mainstay of those saving for a long-term goal such as retirement.
Investing a fixed sum at regular intervals automatically buys more shares when prices dip, and fewer shares when markets rise. Is this strategy off the mark, especially in a crisis? It may not always feel so, but financial history is on the side of risk-taking.
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