Point of Maximum Financial Risk

Written by The Dividend Guy on August 17, 2006

I usually don’t do these quick posts, but I saw something on a cool blog - The Big Picture - that pretty much sums up the investment sentiment cycle:

The Sentiment Cycle

I think every investor has gone through this cycle in their investing careers - no matter how short or long they have been at it. The most important thing is not acting on these emotions, but rather looking at the facts only to make your investment decisions. That way you do not fail prey to those times of desperation and panic.


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2 Comments so far

  1. finance girl August 17, 2006 11:04 pm

    very cool site, and very true re: investor sentiment. That whole “not acting on emotions” can be tough!

  2. Grant August 26, 2006 7:48 am

    Yep, I’ve been through that one.

    Fortunately, I recognized it before I pulled the trigger to dump my portfolio in the “depression” stage.

    As they say, time heals all wounds (in most cases). In my case time taught me not to show up for the gun fight and get out while the gettin was good!

    -Grant
    TheCornerOfficeBlog.com

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