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FINANCIAL MARKETS 6-1 Discussion: Why We Make the Decisions We Make The age-old saying for investing is "buy low and sell high," but this is easier said than done. Investors who are scared of falli

FINANCIAL MARKETSĀ 

6-1 Discussion: Why We Make the Decisions We Make

The age-old saying for investing is "buy low and sell high," but this is easier said than done. Investors who are scared of falling prices sell their investments, which in turn lowers the price and then creates a snowball effect. Consider a situation where all of your investments are exposed to the stock market and prices are starting to fall. You do not need the money until retirement, which is in 20 years. How would you react to this situation and why? If you decide to sell, what would you purchase instead?In responding to your peers, what would you have done differently and why?

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