Title: Market Problems? Blame Investors
Headings: Market Problems? Blame Investors
Market Problems? Blame Investors
Key Takeaways
Following the Crowd
We Can't Control Everything
Holding Out for a Rare Treat
Xenophobia
A Handy List
The Bottom Line

Content: But turbulence in the market can often be linked not to any perceivable event but rather to investor psychology. A fair amount of your portfolio losses can be traced back to your choices and the reasons for making them, rather than unseen forces of evil that we tend to blame when things go wrong. Here we look at some of the ways investors unwittingly inflict problems on the market. Key Takeaways
When markets turn sour, fear and anxiety can cause individual investors to sell their holdings to prevent losses from mounting. Panic selling, however, can create a negative feedback loop sending prices far lower than is justified. Smart investors can see a selloff like this as a buying opportunity to go against herd mentality and pick up bargain stocks. Following the Crowd
Humans are prone to a herd mentality, conforming to the activities and direction of others. This is a common mistake in investing. Imagine you and a dozen other people are caught in a theater that's on fire. The room is filling with smoke and flames are licking the walls.