What’s the main mistake investors make in times of panic?

Periods of panic in financial markets can feel overwhelming, but it’s essential not to let emotions take over. Getting out of the market at the wrong time can mean missing valuable opportunities for recovery and growth.

History shows that some of the strongest market rebounds occur shortly after the steepest declines. Selling in the middle of a downturn can leave investors on the sidelines just as markets begin to recover.

Staying disciplined, reviewing your strategy, and keeping long-term goals in mind are key to avoiding turning an emotional reaction into a permanent loss. “The first mistake investors make is overreacting to the news,” explains Ismael García Puente, Deputy Director of Investment Strategy at Mapfre AM.

In his view, rushed, emotional responses often lead to decisions that are not aligned with long-term objectives, particularly during periods of high volatility, such as those seen in recent weeks amid tensions between the United States and Iran.

“Trying to predict what will happen, when it will happen, and how it will affect each asset class is extremely difficult—and historically has added little value,” he notes.

In this context, Mapfre AM’s Deputy Director of Investment Strategy recommends staying calm, avoiding impulsive moves, and relying on a financial advisor to help manage emotions. Beyond any tactical decisions each investor may make, García Puente stresses that the best defense is built before the storm: having a well-diversified portfolio capable of absorbing market shocks.

The importance of having the right support

Regardless of market conditions, having a trusted financial professional is essential to guide decision-making and help maximize investment outcomes.

At Mapfre, we have a team of financial experts, Mapfre Gestión Patrimonial, who help investors find the options that best match their goals and needs. With 15 offices across the country, our priority is to stay close to you, acting as a trusted partner and supporting you in every financial decision so you can achieve your goals.