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. 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.
In this episode we cover:
Table of Contents
- 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.
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- 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”.
Connect with Acquania Escarne
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 is also the host of The Purpose of Money, a podcast for women focused on building generational wealth.
Listen to Acquania’s episode where we talk about ways to build wealth and leave a legacy behind.
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Danielle Desir Corbett paid off $63,000 of student loan debt in 4 years, bought a house at 27, and has traveled to 27 countries, including her favorites, Iceland, China, and Bermuda. Go here to learn Danielle’s incredible story, from struggling financially and in debt to finding creative ways to earn more and live on her terms. Listen to The Thought Card Podcast, where Danielle shares how you can creatively travel more and build wealth regardless of your current financial situation. Reach out to Danielle by contacting: thethoughtcard (at) gmail (dot) com.