If you wish to lower the volatility of your portfolio, stop looking at it so often.— Rick Ferri, CFA (@Rick_Ferri) October 27, 2018
But suppose you resist the temptation to constantly check your portfolio each month. Instead, you only look at it once every twelve months? The result is that you see a negative return about once every six years. So, 85% of yearly return is positive!
What if you’re one of the level-headed ones, prepared to only look at your portfolio every three years? Well, you improved your investment experience significantly. Over 90% of times, you’ll see a positive return. Your portfolio’s value is higher than the last time you checked in nine out of 10 times.
What about once every five years?