During stock market crash investors may not have enough cash to re-invest in quality scrips.
Specially
during stock market crash investors find difficulty to protect their portfolio.
Not exact matches
«
Investors often want to dump shares
during a
stock market crash because they want to cut their losses and because they fear even greater declines,» said Kelly Shue, a professor of finance at the Yale School of Management.
Many
investors learned this lesson the hard way
during the
stock market crash of 2008.
During the
stock market crash of 2008, the speculator's
stock tumbled 65 % while the
investor's
stock only fell 6 % to the March 2009 low.
Similarly
during stock market crash it doesn't matter how well - experienced or well - qualified an analyst /
investor is, it is next to impossible to save equity only portfolio.
To tell you the truth,
investors usually lose money any time
during stock market crash.
Fear causes
investors to overdo it on the downside — both
during market crashes and in individual
stocks (a major reason value investing works).
When
investors stop engaging in long - term timing (as they did
during the Buy - and - Hold Era), there is no way for
stocks to return to fair value (as they must if the
market is to continue to function) except through price
crashes.