- Omar Aguilar of Charles Schwab Investment Management talked to Business Insider about what investors need to know during this period of heightened volatility, both in terms of strategy and their own biases.
- Along with his role at the $485 billion investment firm, Aguilar has spent years studying behavioral finance to understand what makes investors tick.
- He acknowledges that it’s hard to stay rational at times like these but says traders should be guided by their personal risk threshold and not flee to safety or hunt for bargains.
- Visit Business Insider’s homepage for more stories.
A lot of veteran traders and experts say the market’s recent skid is unlike anything they’ve ever seen. But Omar Aguilar is focusing on how familiar it is.
Aguilar is not only the chief investment officer for equities at Charles Schwab Investment Management — which manages $485 billion in assets — but also an expert in behavioral finance. And when he looks at how investors have been acting lately, the market volatility seen in March suddenly doesn’t feel so new.
“Participants’ behavior seems to be moving in the same way that you would expect in any other crisis, whether it’s a recession driven by financial issues or shocks or natural disasters,” he told Business Insider in an exclusive interview. “A lot of the typical data that drives markets basically stopped, and everything was drawn to the behavioral part of the market.”
He added: “That tends to explain situations like the ones we have now.”