What Does a Falling Market Say About Investor Psychology?

Markets don't assess intrinsic value from day to day, and certainly they don't do a good job during crises. Value is something the market doesn't know any more about than the average investor. We all know we want to buy, not sell at the lows, and sell, not buy at the his so then how can it be right to sell because of a decline or buy because of a rise? Advocates of this latter approach must say declines and rises tend to continue more than they reverse. Some savants may have that latter ability, but not many. Most mature investors know intellectually that short term price fluctuations are low in fundamental significance. But sometimes people sell anyway, perhaps for the