Markets are driven by emotional investors trying to predict the future which is inherently uncertain.around a long-term strategy is the cornerstone of a successful investment strategy. Whether you are a professional investor or new to the market, everyone is encouraged to stay calm and focus on their risk profile, long-term goals and stay the course on the recommended asset allocation.
Fear of missing out draws investors into overstretched markets, which can be exacerbated by people searching only for data that confirms their views. Working with limited information or on a part-time basis can also be an issue, and investors have an uncanny ability to be overconfident and extrapolate prevailing trends.
Driven by rising inflationary expectations, central bank hawkishness and the Russian invasion of Ukraine, markets were incredibly volatile in the first quarter of this year. Energy prices rallied hard, bond yields rose rapidly and equity markets fell into correction territory.