Market sell-off attributed to AI investments and interest rate shifts, investors advised to stay calm.

From Morningstar: 2024-08-07 08:09:00

Christopher Johnson and Mike Coop discuss the recent market sell-off, attributing it to volatility in AI-themed investments, shifts in interest rates, and market panic. Coop advises investors to focus on long-term goals and avoid behavioral traps like confirmation bias and overconfidence. He emphasizes the importance of sticking to a solid investment strategy and rebalancing portfolios in times of market volatility. Finally, he notes how a valuation-driven approach can help identify investment opportunities during market downturns, likening them to department store sales.



Read more at Morningstar: Market Volatility: ‘It Pays to Take a Step Back’