“The Worship of Safety Emasculates Greatness” – Max Lucado, Fearless
It is often said that the stock market is driven by two simple human emotions: fear and greed. Most of us understand the danger of allowing greed to drive our investment decisions, but fear often plays a much more subtle, underlying role in hijacking our investment portfolios. Studies have shown that individual investors are often really bad at timing the market. People invest in droves when the market is near a peak and then flee out of fear when the market is close to its bottom. Fear also keeps people on the sidelines even when they know they should act. Does fear of the next crash keep you from investing in the stock market? Are you hesitant to buy that real estate investment property you’ve been eyeing out of fear of making a mistake? If so, you’re not alone, but just remember that fear is rarely a good decision maker.
Tuesday, April 13, 2010
How To Overcome Fear When Investing
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