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WHEN MARKETS DIP, DON’T LET EMOTIONS SLIP

Market corrections are normal, but emotional reactions often magnify the impact. Here's how emotions play a role and how to manage them:

Fear of Loss

Investors tend to react emotionally to falling markets, often exiting investments to "stop the bleeding."

Tip: Focus on long-term goals rather than short-term drops.

Herd Mentality

Seeing others sell can trigger panic, pushing you to follow the crowd.

Tip: Stick to your strategy/goals and avoid making impulsive moves.

Regret and Second-Guessing

After selling, many investors regret missing the recovery.

Tip: Corrections are temporary; avoid decisions based on temporary emotions.

Overconfidence After Recovery

Once markets bounce back, some take excessive risks thinking the worst is over.

Tip: Maintain a balanced and diversified portfolio.

The Power of Patience

Historically, markets recover from corrections and reward disciplined investors over the long-term having patience.

Tip: Stay invested, stay informed and stay calm.

Corrections test your emotions, not just your portfolio. Staying grounded and following a clear investment plan is the best defense against emotional decisions.

Views provided above are based on information available in public domain at this moment and subject to changes. Please consult your financial advisor for any investment decision.

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