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 ...