We will have some sort of a contraption that we don't quite understand very well that will inject leverage into the system at the worst possible time. So crashes are a uniquely human event, and we will continue to have them. I think what this means though, is that the sort of devastating, decade long depression like we had in the 19 thirties is extremely unlikely. The stock market is a wonderful place to build wealth and create a retirement and to fund your children's educations. And again, will do all of the heavy lifting if we'll just meet it half way. Man invested. Don't pull out because of loss aversion, and you will end up doing well, as
#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
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