Sep
07
2009
Failure to panic in a crash
By admin
Failure to panic in a crash is more troublesome. Tech stock investorswho did not get out in April 2000 know these feelings well. Holding on through a crash will lead to depression and a sense of inferiority. Longer bear markets lead to confusion, free-floating fear, resentments, and regrets. Those who failed to panic in 1966, 1970, and 1974 suffered until the 1980s bull market became fully established in 1985. Investors who hold on during long bear markets feel helpless, unable to stay in the market and sit with the pain of loss, yet unable to get out for fear of missing a great rise in prices. These emotions may last many years.
