"Many people behave badly when it relates to their investments. They panic when stock prices fall and sell when they shouldn't. Or they might purchase a hot gold-mining stock after gold prices have already skyrocketed. Essentially, investors tend to buy and sell at the wrong time.
We've seen plenty of evidence investors like to chase performance. People piled into technology stocks in 1999 and early 2000 after the sector posted strong gains in the prior four years as consumers and businesses increased their use of the Internet. Then the dot-com bubble burst in March 2000, sending tech stocks sharply lower. Likewise, in 2006, homes in the Sun Belt were selling like hot cakes as housing prices were peaking. By March 2007, sales and values of homes around the country were falling dramatically, ending the housing boom." Read more: http://money.usnews.com/money/blogs/the-smarter-mutual-fund-investor/2011/05/03/investors-dont-follow-the-herd?utm_source=Oct+2012+David+Swapp&utm_campaign=Dave+Oct&utm_medium=email
Why do Investors Buy High & Sell Low?
Reviewed by Pisstol Aer
Published :
Rating : 4.5
Published :
Rating : 4.5