Emotional Risk #2

In most areas of life, lower prices are seen as a good thing, but in investing, they’re often viewed as bad.

This is a natural reaction, but acting on it can lead to long-term regret.

We tend to feel good about paying more for stocks when prices are rising, even though we should feel more positive when the market is down.

The stock market is the only place where, when prices drop (like in a bear market), people tend to run out instead of seeing it as an opportunity.

Historically, bear markets have offered big discounts on quality stocks, and avoiding them isn’t logical, but it’s a natural instinct.