Why investors should not make knee-jerk decisions based on bad news
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The greater the drawdown, the greater the danger of selling in a panic and locking in losses.
PHOTO: REUTERS
Nir Kaissar
When financial markets teeter, as they have since 2022 began, there is no shortage of speculation about where they are headed. Morgan Stanley warned recently that March would be a brutal month for stocks.
One financial adviser echoed that sentiment, saying that “there will be a lot of volatility in the markets” and “lots of chances to put cash to work at attractive levels”.