According to an article on msn.com’s investing section, excitement is not good for investors – and neither is fear nor greed.
But, it turns out most of us are ruled by these emotions when it comes to investing. Economists often think that investors are rational.
Au contraire! Investors get panicky when Wall Street panics and they are a group that tends to get greedy when the Street rides a wave in the positive direction.
Investor-billionaire Warren Buffet is often quoted as saying excitiment and expensese are an investor’s enemies. He said, Fear when other market participants are greedy, and get greedy when other investors are fearful.
Going by that, prudent investors might be buying stocks at the present time as most of established Wall Street is angst on subprime worries, and the impending recession.
In aggregrate, this is not the best time for FEAR!
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