When it comes to investing, it’s important not to overreact, says Morningstar Wealth chief investment officer Mike Coop.
Instead, Coop believes that you should stay focused on your goals, turn off your news feed and ignore market forecasts.
If an investor changes course midway due to sudden events impacting the markets, it will just detract from their goal.
Coop added that investors tend to react more to the market falling than the actual event that caused it.
This is where financial advisers play an important role, as they can mitigate all the risk and traverse the economy, Coop said.
He added that “it is a pity more people in the UK do not receive advice”.
“There will always be uncertainty about the future and we just have to accept it,” Coop said.
Over time, markets tend to recover and reach new highs. While downturns are relatively rare, history shows they leave the strongest impression, because they’re the “most memorable”.
One issue with market movements is that it is “painful to take a different view to everyone else”.
Still, panic creates an opportunity to buy and this is why advice is “really important”.