MarketWatch Columnist Advises Investors on Managing ETF Volatility
Quentin Fottrell advised retail investors to avoid frequent portfolio monitoring and use dollar-cost averaging to mitigate anxiety caused by geopolitical volatility.
Financial columnist Quentin Fottrell, writing as The Moneyist for MarketWatch, advised a retail investor on managing the psychological stress and volatility associated with exchange-traded funds. Fottrell cautioned against myopic loss aversion, a condition where investors react emotionally to short-term declines because they monitor their accounts too frequently.
To reduce risk and anxiety, Fottrell suggested implementing dollar-cost averaging and bond-tent allocations. He also recommended creating bond ladders using CDs or securities to establish a predictable income stream.
Fottrell noted that while investors remain spooked by geopolitical tensions—specifically a war in Iran, the Russian invasion of Ukraine, and trade policies under President Donald Trump—major indices including the S&P 500 and Nasdaq have achieved significant growth between January and October.
