The federal reserve was created as a result of the panic of 19 o seven. Allan greenspan knew in 19 87 exactly what the response should be to the stock market crash. And now we have a play book that works. So long as the governmental response, tor the federal reserves response, is appropriate or what we expect, then we tend to bounce back pretty quickly.
#388: Recessions are terrifying.
Market crashes often bring out the worst in people’s anxieties and fears.
This fear triggers us to act even more irrationally than usual – which can lead to making expensive mistakes in our investment portfolios.
In today’s episode, Scott Nations, who spent his career studying market volatility, describes some of the most common cognitive biases and irrational behaviors that investors make. He shares tips on how to master the mental game of investing, especially in turbulent times.
For more information, visit the show notes at https://affordanything.com/episode388
Learn more about your ad choices. Visit podcastchoices.com/adchoices