Skip to contentHome page Seeking Alpha - Power to InvestorsDec. 06, 2025 5:45 AM ETVXX, VXZ, VIXY, VIXM, UVXY, SVOL, SVXY, IWM, IWV, IWFFTSE Russell1.03K FollowersCommentsSummaryEmotional bias drives costly reactions - panic selling during downturns or chasing winners during rallies often leads to missed recoveries or late entries.Market timing rarely works - anchoring and hesitation can cause investors to miss strong rebounds that historically occur faster than expected.Long-term discipline beats short-term noise - consistent allocation, avoiding crowd behaviour, and sticking to a systematic approach improve outcomes in volatile markets.recep-bg/E+ via Getty ImagesBy Catherine Yoshimoto, Director, Product Management, Benchmark Product DevelopmentMarket volatility is inevitable - but how investors react to it matters more than the volatility itself. This blog explores how cognitive biases like loss aversion, recency bias, and anchoring haveThis article was written byFTSE Russell1.03K FollowersA leading global provider of benchmarks, analytics, and data solutions with multi-asset capabilities FTSE Russell's solutions offer a true representation of global markets across asset classes, styles, and strategies. Our global perspective is underpinned by specialist knowledge gained from developing local solutions and understanding client needs around the world. FTSE Russell is a wholly owned subsidiary of London Stock Exchange Group (LSEG), and is a unit of the Information Services Division.FTSE Russell’s expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers. ETF providers, and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.The Yield Book analytical insights With the recent addition of The Yield Book business, FTSE Russell extends its expertise in analytics to a highly respected analytics platform that serves approximately 350 institutions globally including investment management firms, banks, central banks, insurance companies, pension funds, broker-dealers, hedge funds and investment management firms. The Yield Book offers analytical insights into a broad array of fixed income instruments with specific focus on mortgage, government, corporate and derivative securities.CommentsQuick InsightsLoss aversion often drives investors to sell at market lows, locking in losses and causing them to miss subsequent rebounds, as demonstrated in the 2020 Russell 3000® Index recovery.Performance-chasing leads to buying at momentum peaks, as seen in the Russell 2000 and 'Magnificent Seven,' exposing investors to reversals when leadership fades or valuations moderate.Systematic approaches like dollar-cost averaging keep investors engaged through uncertainty, capturing compounding benefits and avoiding the pitfalls of missed rebounds or panic buying after trends reverse.Recommended For YouTo ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.Is this happening to you frequently? Please report it on our feedback forum.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.