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: Market Problems? Blame Investors
Trading Skills & Essentials Trading Psychology
Market Problems? Blame Investors
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Andrew Beattie was part of the original editorial team at Investopedia and has spent twenty years writing on a diverse range of financial topics including business, investing, personal finance, and trading. Learn about our editorial policies
Andrew Beattie
Updated Mar 16, 2021
Table of Contents
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Following the Crowd
We Can't Control Everything
Holding Out for a Rare Treat
Xenophobia
A Handy List
The Bottom Line
Sure, the economy sometimes hits a slump, whether because of a war or an unforeseen natural disaster. Of course, these things are beyond an investor's control. 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.