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. Good to have panic selling in the market to normalize opportunities

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

      Delete
  2. This comment has been removed by a blog administrator.

    ReplyDelete
  3. 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

Post a Comment

Related Posts Plugin for WordPress, Blogger...

Labels

Show more

This Month's Top Blog Posts

2nd Qtr 2021 : Portfolio & Dividend Update

Crisis = Danger + Opportunity? (危机 = 危险+ 机会)

Dow Jones 125 Years : Investing For The Long Term

US vs China : Divergence of Monetary and Fiscal Policies

Investing in 2.96% p.a AAA Bond