<2> Staying the Course: A Guide to Investing During Turbulent Times
<3> The Importance of Emotional Discipline in Investing
Investing in the stock market can be a daunting task, especially during times of war and economic uncertainty. As Howard Marks, the co-founder and co-chairman of Oaktree Capital Management, once said, “Don’t let war affect your emotions around investing.” This phrase highlights the importance of emotional discipline in investing, particularly during turbulent times.
<3> The Psychology of Investing
Investing is not just about making informed decisions based on data and analysis; it’s also about managing one’s emotions. Fear, greed, and anxiety can often cloud a person’s judgment, leading to impulsive decisions that can have long-term consequences. According to a study by the American Psychological Association, 71% of investors reported feeling anxious or stressed when making investment decisions.
<3> The Role of Emotional Discipline
Emotional discipline is the ability to separate one’s emotions from investment decisions. It involves being aware of one’s emotions and taking steps to manage them. This can be achieved through various techniques, such as:
– < href='https://bloomberg.com' target='_blank'>Bloomberg’s article on “The Power of Emotional Discipline in