Article on investor mania, quoting Russell strategist Stephen Wood:. "... investors bolt into hot-performing assets just in time for the peak and similarly, they shun undervalued stocks when markets are in retreat mode, he said, thereby reversing the "buy low, sell high" mantra.
"The way our brains are constructed, when markets are up or down big, it affects the way people perceive information and make decisions," Wood said. Investors ride euphoric highs and ignore risk in bull markets, while becoming overly depressed and paralyzed in bear markets.
How are you feeling now? Relax, you are not the only one, but the ones who will make money are the ones not freaking out at the bottom. Up there, yes, get scared. Down here? Look for opportunity.
"The way our brains are constructed, when markets are up or down big, it affects the way people perceive information and make decisions," Wood said. Investors ride euphoric highs and ignore risk in bull markets, while becoming overly depressed and paralyzed in bear markets.
How are you feeling now? Relax, you are not the only one, but the ones who will make money are the ones not freaking out at the bottom. Up there, yes, get scared. Down here? Look for opportunity.
This entry was posted
on Tuesday, May 23, 2006 at 8:45 PM.
