Neil Murphy says that high costs and bad decisions — things like chasing hot funds or
panicking during market crashes — doom most investors to subpar returns.
Not exact matches
During the stock
market crash of 1929, thousands of people
panicked and committed suicide.
This is because
market participants
panic during a
crash — shunning the downward - dropping stocks for the safety and comfort of United States Treasuries.
Air - pockets,
panics and
crashes had regularly followed these and lesser «overvalued, overbought, overbullish» extremes in every previous
market cycle, and our reliance on that fact became our Achilles Heel
during the advancing half of this one.
For investing, I've focused mainly on how mindfulness can minimize unproductive reactions like
panic selling
during a stock
market crash.
The true risk is the permanent loss that's created by
panic selling
during a
market crash.
So although
panic selling can disrupt the order book, especially
during periods of illiquidity, with the current structure «the stock
market» being based off of three composite indexes, can never
crash, because there will always exist a company that is not exposed to broad
market fluctuations and will be performing better by fundamentals and share price.
It'll also help you stay on course instead of trying to take shortcuts (by doing things like chasing hot stocks) or
panicking when things fall apart (such as
during 2008's
market crash).