Inflation, rising interest rates, a volatile stock market, and the threat of recession. We’ve seen it all before, but not always in the same combination. No one likes to lose money, but regardless of the variety of factors at play, the same question will always arise among investors: Where should I put my money now?
“The very first thing we have to recognize is that humans have a built-in bias to want to do something,” says William Luther, associate professor in the economics department at the Florida Atlantic University College of Business. “No one wants to see a portfolio drop by 20 percent, but as counterintuitive and uncomfortable as it is, the correct answer is often to do nothing different.”
Investors with a well-diversified portfolio in low-fee exchange-traded funds or…
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Naples Illustrated (Digital) - 1 Issue, January 2023