The Psychology of Sitting in Cash

The Psychology of Sitting in Cash

I read an interesting article and wanted to share it with you

The Psychology of Sitting in Cash

Last week, we saw increased volatility in the equities markets around the world. And understandably people are worried. Some are questioning the asset allocation decision for their portfolios and thinking about moving investments into cash. This article provides some insights about the problems investors face when doing that.

The article shares our point of view that reacting to market movements without having an investment plan and philosophy will lead to not only bad investment decisions but also increased stress and anxiety. Stock market gains and losses are two sides of the same coin. To win you have to be willing to lose. Many try to take the gains and avoid the losses, few succeed.

https://awealthofcommonsense.com/2018/10/the-psychology-of-sitting-in-cash-part-deux/