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Für den einen oder anderen ....
eine Überlegung
If you bought Bitcoin a year or two ago and you could pay off your house with Bitcoin (BTC-USD) at $50,000, would you do it? From a life perspective, I think doing so is a rational move, especially if you don't have to sell all your portfolio to do so. There are thousands and thousands of people going through similar calculations all over the world – which will have an effect on the market in the aggregate.
While it's completely rational to sell for diversification and personal reasons from an economic utility standpoint, this got me thinking about some old research I had done on a behavioral finance anomaly called the disposition effect.
.....
Despite this natural tendency for winners to keep winning, people generally sell their winning investments when they go up, whether it's to buy a new car, to pay off their mortgage, or to book a profit. Investors will hold and even buy more of their worst-performing stocks in an attempt to get back to even in them. This causes the prices of lousy stocks to lag deterioration in their earnings/fundamentals as well.
https://seekingalpha.com/article/4406029...lling-dime
eine Überlegung
If you bought Bitcoin a year or two ago and you could pay off your house with Bitcoin (BTC-USD) at $50,000, would you do it? From a life perspective, I think doing so is a rational move, especially if you don't have to sell all your portfolio to do so. There are thousands and thousands of people going through similar calculations all over the world – which will have an effect on the market in the aggregate.
While it's completely rational to sell for diversification and personal reasons from an economic utility standpoint, this got me thinking about some old research I had done on a behavioral finance anomaly called the disposition effect.
.....
Despite this natural tendency for winners to keep winning, people generally sell their winning investments when they go up, whether it's to buy a new car, to pay off their mortgage, or to book a profit. Investors will hold and even buy more of their worst-performing stocks in an attempt to get back to even in them. This causes the prices of lousy stocks to lag deterioration in their earnings/fundamentals as well.
https://seekingalpha.com/article/4406029...lling-dime
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Corrections are usually over very quickly, and they're traditionally painless to long-term investors.
Experience is what you get, if you expect anything else!
Alles ist Zahl - die Vollkommenen --> 6; 28; 496; 8128; 33550336; 8589869056
Corrections are usually over very quickly, and they're traditionally painless to long-term investors.
Experience is what you get, if you expect anything else!
Alles ist Zahl - die Vollkommenen --> 6; 28; 496; 8128; 33550336; 8589869056
