Rational Irrationality : From Stock Market to Supermarket
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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|