How fear robs investors of opportunities and returns
When doubts and fear crowd out the big picture, keep the faith and focus on the even-bigger picture. Building guardrails against poor behaviour will help us to stay invested
IT’S not brains that will help you beat the stock market – it’s your stomach.
Peter Lynch once said that you can be the world’s greatest expert in financial statements. But without a strong stomach, you will succumb to the negative headlines, and sell in panic when share prices go down. That is what is happening today.
With dark clouds gathering around the global economy, stocks are generally cheaper today than they have been for the past two years. Yet, not many are won over by the lower valuations. It’s not for the lack of data or analysis. There is more information readily available today than there has ever been.
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