Why We Make the Decisions We Make

Why We Make the Decision We Make
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Why We Make the Decision We Make
Investors are always advised to buy low and sell high, but with a fall of share prices, one finds it hard to stick to the investment since they usually panic that the stock prices will continue to fall and lead to losses. Returns on speculative assets can barely be forecasted, making the real price of stocks an intrinsic value (Shiller et al., 1984). Stock prices are vulnerable to social movements since there is no standard theory of comprehending the worth of stocks (Kurihara & Fukushima, 2014). There is no ordinary model of the behavior of prices that investors can use. Hence, based on the above scenario, I would react to the situation by revisiting my investment plan and rebalancing my portfolio.
I would react to the fall in stock prices by taking some money off the table. Trimming my stock allocation by ten percent will enable me to get back to my target mix. I could leave the money in cash or ...