The things that are immediate and easy for us to recall, we just tend to overestimate their likelihood. And if something happened recently in the stock market and you can still remember it, it's probably not very normal. In trying to pick out one day, or one week, or even one month of what happened in the stockMarket as a thesis for your entire portfolio is probably a poor approach.
#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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