It’s Not Mind Over Matter, It’s Minding What Matters

Investors can sometimes get into trouble with their investments because of two intense emotions: greed and fear. We’ve all had experiences where our sentiments got the best of us, and we may have reacted by panicking, selling, and losing momentary sight of our long-term strategy.

This is another lesson we can draw from past market meltdowns and economic recessions. Having lost so much money, some investors abandoned their long-term plans and frantically sold stocks and even fixed-income investments like tax-free bonds. They decided to give up on the investment markets, hoard cash, and pay down their debts.

Now, paying down debt is a noble thing to do, and these investors should get credit for ...

Get Practical Lessons for Your Financial Life (Collection) now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.