How to stay consistent in your investment strategy and how you shouldn't panic in a market decline if you're a long-term investor.

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In this episode, Acquania Escarne and I discuss Vanguard’s coronavirus market volatility research report which found that although trading among U.S. individual investors increased during the pandemic, the majority are “staying the course” and not trading in response to the market decline.

In this episode learn why it’s important to stay consistent in your investment strategy, especially if you’re a long-term investor and why you should leave your emotions out of the decision making process.

Acquania Escarne is a financial coach, freelance blogger, and podcaster committed to helping people find financial freedom and leave a legacy behind for their families. She recently launched The Purpose of Money, a podcast for women focused on building generational wealth.

Read Vanguard’s market volatility research report.

Listen to Acquania’s episode where we talk about ways to build wealth and leave a legacy behind.

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Report Results:

  • Between February 19th and March 20th, 2020 trading among Vanguard’s individual investors increased.
  • 8% of U.S. households made trades, but half of those only made one trade. Majority moved money into equities (stocks, mutual funds, etc) rather than fixed income (bonds and cash).
  • More than 90% of U.S. individual investors “stayed the course” and did not trade in response to the market decline.
  • Households with the highest balances moved away from equities.
    • Older and wealthier households sold their positions, while the typical trader “bought on the dip”.

In this episode we cover:

  • Potential reasons for why my most people did not trade in response to the market decline.
  • Understanding your risk tolerance.
  • Why having an investment strategy is important.
  • Why you should leave your emotions out of the decision making process.

Connect with Acquania Escarne

Website: https://www.thepurposeofmoney.com

Facebook: @rrdinvestments

Instagram: @thepurposeofmoney

Twitter: purpose_money


Want to get started investing? Get your first stock free by getting started investing with Robinhood!

Also, check out this blog post where I share the most common investment terms you should know about.

Bonus: Staying Consistent in Your Investment Strategy Despite Stock Market Decline
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