- “Individuals who cannot master their emotions are ill-suited to profit from the investment process.” - Benjamin Graham
- Emotional investment reactions to sudden market declines and increased volatility tend to be driven by human behavioral biases, such as loss aversion.
- Historical patterns of investor behavior show that surging equity market volatility can cause some investors to make hasty, emotionally charged investment decisions that often turn out to be regrettable.
- Recognizing innate biases may help prevent investors from tampering with a well-crafted portfolio strategy during periods of severe market turmoil.
Wednesday, August 10, 2011
Don't Let Market Volatility Lead To Regrettable Investment Decisions...
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