Chuck Jaffe: This Is How To Stay In The Market When Stocks Spin Out: Text & Audio

Ted

FYI: New research from Rui Yao, an associate professor of personal finance at the University of Missouri, identifies risk factors for people who are “more likely to make investment mistakes during a down market,” and finds that aversion to losses is the chief culprit.
Regards,
Ted
http://www.marketwatch.com/story/this-is-how-to-stay-in-the-market-when-stocks-spin-out-2016-02-18/print

Chuck Jaffe's Money Life Show: Guest: Rui Yao ( Scroll & Click On Download)
http://www.moneylifeshow.com/highlights.asp

BobC

Great commentary, and very, very true. Most folks are "long-term" investors until bad times come around, at which they become "short-term" traders. Big mistake. Big mistake. We see this in every market sell-off period without fail. Had a client who last Thursday told us to put everything in short-term bonds. It is their money not ours, and they said they would rather miss out any upside if they could stop the bleeding. Of course, short-term bonds are down a bit since then, while stocks are way up. The trend may not last, but this is reminiscent of some clients in early 2009 who bailed, then waited too long to get back in, or never got back in.