The Anchoring Problem and How to Stop Letting It Hurt Your Returns
From Investing.com: 2025-05-23 06:14:00
Investor sentiment is at its lowest since the financial crisis, driven by media narratives. Understanding the difference between event-driven corrections and structural bear markets is crucial. The death cross can be a contrarian indicator, signaling the potential end of corrections. Anchoring, a behavioral bias, impacts decision-making. Investors should avoid anchoring to high-water marks and focus on long-term goals. Market volatility can trigger emotional responses, but sticking to your investment process is key. Seven rules to follow during tough markets include moving slowly and selling losers. Keeping perspective and focusing on goals is crucial amidst market turmoil.
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