Investing and penalties: a game of nerves or reactions?

A record-breaking five matches were decided this way in the 2022 tournament, including, famously, the final between Argentina and France.

Penalty shootouts offer goalkeepers the chance to be the hero, to display lightning reactions, diving to the left or right in an effort to keep the ball out of the net. In truth, they often would be better served staying put in the middle of the goal. But it wouldn’t look as good.  

The same is true in investing – with so much noise around world events, it can be tempting to buy and sell investments as they rise and fall, to try and time the market. But history has shown time and time again the best option is to avoid making emotional decisions, and to stay true to your long-term process. While investments have delivered positive outcomes over many longer-term periods, returns can never be guaranteed, and you could get back less than you invest.