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When Stock Market Bubbles Pop
4 horrible assumptions investors make every time a stock market bubble ends
Inflation is high and rising. Stock markets are crashing due to Putin’s war and the rising odds the war in Ukraine will push the US economy into stagflation and recession.
It becomes more clear by the day that some of us have unfortunately have been sucked into the stock market at precisely the wrong time and bought stocks near the peak of a wildly overvalued stock market. Yet, rather than trying to limit the damage, human nature will cause many of us to hold on to our bad investments — all the way to the bottom. This psychological phenomenon is called loss-aversion — a well-known reaction to loss.
Unfortunately, loss aversion isn’t limited to novice investors. Even experienced investors can fall victim to loss-aversion whenever they make one of the 4 horrible assumptions so many investors make every time a stock market bubble ends.
Vladimir makes 4 horrible assumptions
Putin’s big dream has always been to re-establish the Soviet Empire and Ukraine has always been the key to…
