Thursday, September 29, 2011

Financial Risk

It's always interesting to me that many people tend to have an inverted sense of actions to take when the stock market drops. The knee jerk reaction seems to be sell low and buy high. Instead of buying on major drops, we tend to sell out of fear. Now, sometimes past scars can be a reason for being cautious, but once the drop has happened, selling does not make sense unless we think that the investments held are bad investments. Moving money from less promising to more promising investments is always a good transfer to make.

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