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: If you are shifting your non-risk capital into high-risk investments, you're contradicting every rule of prudence to which the stock market ascribes and asking for further problems. You can lose money on commissions by overtrading and making even worse investments. Don't let your pride stop you from selling your losers and keeping your winners. Xenophobia
People with this psychological disorder have an extreme fear of foreigners or strangers. Even though most people consider these fears irrational, investors engage in xenophobic behavior all the time. Some of us have an inborn desire for stability and the most seemingly stable things are those that are familiar to us and close to home (country or state). The important thing about investing is not familiarity but value. If you look at a company that happens to look new or foreign but its balance sheet looks sound, you should not eliminate the stock as a possible investment. People constantly lament that it's hard to find a truly undervalued stock, but they don't look around for one; furthermore, when everyone thinks domestic companies are more stable and try to buy in, the stock market goes up to the point of being overvalued, which ironically assures people they're making the right choice, possibly causing a bubble.