Patience is more than a virtue. It is at the core of investment behaviour. When there is first sign of a crisis, it is very easy to lose one’s patience. But, that is when patience can be a great asset. You need to show loads of patience when others tend to lose it easily.
In the present circumstances, we are seeing investors stopping SIPs, questioning small portfolio drawdowns and getting upset with short term underperformance. These are telltale signs of wrong behaviour. When the markets turn more volatile, irrationality is bound to rise. When it rises sharply, we will see performance fluctuations in portfolios.
But, a genuine long term investor should stand out during such times. He should show conviction when others lose it easily. He must demonstrate persistence when the market is unable to be so. Investors need to show character in times like the present. By doing so, they are certain to be rewarded later.