There is a saying that markets rise by walking up the stairs and fall by jumping out the window and after good market performance throughout 2020 and 2021, we've seen this partially unravel in the early months of this year.
To ease Erica's mind and the constant refreshing of her portfolio performance page, she called Rob to discuss the recent market movements, and to better understand why we're seeing this volatility and what actions we can take or not take to combat it.
During their conversation, they cover the role human emotion and sentiment plays within short-term asset pricing and how not to get caught up in the moment, the impact of interest rate and inflation rises are having on markets, the importance of a diversified portfolio, and how pound cost averaging can help turn volatility into an opportunity.
If you're not sure what to think or how to act in relation to the recent market movements, this episode is for you.
Within this episode, Erica and Rob mentioned pound cost averaging, you can learn more about what it is with our Learning Centre video What is pound cost averaging?, as well by reading more about how you can invest little but often. You can also learn more about diversification with Rob's article on why your investment portfolio should be like a rugby team.
Are you a beginner investor?
If you enjoyed the episode, you might like to check out our Learning Centre YouTube series. Each lesson covers a new investment topic, helping you to understand the basics, bust the jargon, and break down the barriers to investing.
Listen to other podcast episodes
To catch up on all episodes in our series 'We Need to Talk About Investing' or to listen to expert commentary from our research team and analysts. You can listen to Charles Stanley Radio on
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We Need To Talk About Investing - Ep. 8: Market Volatility
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