We are living amid continued economic and geopolitical uncertainty. This can challenge even the most steadfast of temperaments.
When stability is threatened, it just feels better to do something.
It’s during times like this that we may fall susceptible to action bias. Action bias shows up when we encounter a problem and our brain tempts us to immediately spring into action in response to fear, either real or perceived. And who can’t relate? When stability is threatened, it just feels better to do something, anything, doesn’t it? Even if that may be the wrong thing, unfortunately.
Remember that your financial strategy is a marathon, not a sprint.
The best strategy is NOT to automatically act, but instead to pause, assess, and plan a smart next move. A well-structured portfolio may be able to withstand whatever comes your way.
When you feel action bias tempting you, take a deep breath and remember that your strategy is a marathon, not a sprint.