Tuesday, August 11, 2009

Why Overreacting Can Hurt Your Portfolio

I have said many times over at my blog that the most terrible enemy to investors is fees, tied neck and neck with emotional reactions to investment decisions. We all know how this works - you see the market panicking around you and the newspapers claiming that the end of the world is upon us. You have a gut reaction and before you know it you just sold out of that index fund and into all cash. Problem solved right! Nope - you just messed yourself up for the long term.


I was watching the most recent video from the folks over at SoundInvesting on YouTube and saw this pretty good video which talks about how overreacting can hurt your portfolio. I think there are some good lessons in this video for all investors.



This article was written by The Dividend Guy. You may email questions or comments to me at info@thedividendguyblog.com.

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