Irrational Investor Behavior
There's a lot of irrational investor behavior when stocks tank. Start thinking about a decline in the value of stocks as Black Friday for stocks.
As a consumer, some of you will wait in line starting at 4 a.m. on Black Friday.
You’re eager to take advantage of sharply discounted prices on consumer goods.
That makes sense.
When the stock market tanks, your behavior is different.
You dump stocks.
Think about it this way.
When the stock market goes down, stocks are on sale.
All we really know about the stock market is that, over time, it goes up.
Start thinking about a decline in the value of stocks as Black Friday for stocks.
That would make sense.
