Sometimes the best thing to do is nothing.
And according to Duke University behavioral economist Dan Ariely, nothing is exactly what most investors should do during the coronavirus outbreak.
Ariely, author of the best-selling book "Predictably Irrational," says there are three types of investors, and you should know which kind you are before making any trades. Some think they have no special knowledge, others overestimate their understanding of the markets, and some are actual experts.
If you admit to not being an expert, Ariely says, your best option is to avoid making decisions. "People from the first group should not be trading. You don't know anything special. Don't take any action," Ariely said.
He also recommends not checking your portfolio while the market is down. Ariely said it's going to be a while before things get back to normal, and seeing your account balances dwindle will only lead to stress and anxiety.
Check out this video to learn what Ariely says the other two types of investors should be doing, and how they can rationally evaluate every trade.
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