How to avoid emotional investing in market downturns

Amid an ongoing market downturn, many individuals may be prone to emotional investing. Michael Liersch, Wells Fargo head of advice and planning, joins Wealth! to discuss strategies for avoiding emotionally-charged decisions during this period.
Liersch notes that market downturns can lead to "doom-scrolling," or individuals constantly checking their accounts. This behavior typically results in three main reactions: risk aversion, where people feel the need to eliminate uncertainty; action bias, which creates an urge to de-risk; and "herd-following," where one person's actions quickly lead to a "global phenomenon" of others following suit.
To refrain from emotional investments, Liersch advises three key strategies. First, ensure you have a collaborator to "help keep you in check." Second, constantly review and reassess your financial goals. Lastly, create a comprehensive plan, emphasizing that "you don't want to be making decisions in the absence of a plan."
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[iowaace]

Thanks for the advice! Got NVDA84Y, feeling bullish! 🚀