Over the last two months, equity markets have recoiled, losing more than 10 percent in the broad indexes. So far in 2016, stock market swings and volatility have been the norm, which can be troubling for investors.
The impulse to act can lead to mistakes and mismanagement of investments. Selling during periods of weakness in the market creates a guaranteed loss. The trouble for retail investors and professionals alike is that trying to time the market during rough periods can further compound losses in their portfolios.