An interesting article on panic selling.
That’s because investors in these demographic categories are more likely to react to the market’s decline by freaking out and “panic selling.” And if you do that, odds are good that you won’t get back into equities until the stock market is much higher than where it stood when you sold—causing you to lose out to buying and holding.
In fact, according to a new study, you might never get back in. Nearly a third of investors who “panic sell” swear off equities altogether, and never re-enter the market. So they lose out on stocks’ long-term potential.
Kevin Slater