Rational Irrationality : From Stock Market to Supermarket

image credit to youtube.com







Same as investors, peoples act irrationally during crisis or pandemic, we panic selling our "equity " in the stock market and buying " rice or toilet papers " in the supermarket, both have a similarity.















Understanding Investor Behavior < link:investopedia.com>



Be focused, stay calm ( safe ) during this crisis/pandemic. Have a plan and long term view of your investment horizon, don't act "irrationally " during this period of time by "stocking up" your toilet papers or selling your stocks which still have strong fundamental. Instead, as I blogged before ( link), a crisis could be an opportunity if you have a plan in place and buy the good fundamental stocks during crisis where price has plummeted irrationally.



image credit to jasonzweig.com

Cheers !!
STE

Comments

  1. CreateWealth88889 February 2020 at 16:07

    Good to have panic selling in the market to normalize opportunities

    ReplyDelete
    Replies
    1. STE12 February 2020 at 15:47

      Hi Uncle CW8888, indeed , but Mr Market look calm these days ...no chance to buy in dips .. hahaha...need more patience :D

      Delete
  2. Sadhana18 February 2020 at 12:54

    This comment has been removed by a blog administrator.

    ReplyDelete
  3. Dariya18 February 2020 at 18:33

    nice information thanks for sharing valuable content with us we also provide great information related to your blog feel free to visit our
    mutual funds website.

    ReplyDelete

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