Sometimes I wonder if the people who bought a stock because of emotion** are the ones who have a problem with short-term stock movements. They would have always have an emotional view and reaction about a stock and its movements.
** I mean a lack of strong conviction based on some some “solid” reasoning. (Solid reasoning doesn’t equal FOMO or gossip)
I guess people who slowly dump small amounts of cash into stocks then eventually gain a massive amount of cash held in stocks, them seeing it tank after taking years apon years of saving it.
I understand them getting scared some since yeah long period to gain said cash it’s not like the big guns who could smash what they have down every day or week.
Emotionless investing takes time, around 50% of FT users are new investors. We’ve also been in a long bull market with lots of people predicting a dot-com level sell-off. It’s completely understandable for people to be nervous.
I am just arguing that it is difficult to be “emotionless” if the investment is made with “emotion” in the first place. And think that your point is that it takes time for someone to get to that state of really thinking about the investment. Yup, definitely makes sense.
The point is that the person who is wisely regularly saving money should also think about how to wisely invest it. If that person puts the money into penny stocks, or shares that are inherently very risky, the statistics don’t suggest the chance of something good coming out of it to be high.
If that person has been slowly adding to a diverse portfolio then their pot should still be up over the last medium/long period of time. People who chase, often too late, the hype stocks may find this problem but they are not the kind who slowly and patiently invest.
You can see certain stocks get people emotional and on those threads you constantly read min by min evaluations and people selling due to dips etc. These are the people who often lose money due to impatience and chasing hype too late. This is what FT want to avoid as they want long term stable investing and unfortunately most who try and make money in these short windows often fail.
Its clear now that this BoE is entirely haphazard in its approach. Likely decided to take advantage of the positive reaction to the Fed’s tapering last night.
I don’t want to cry stagflation, but does anybody feel the market response is delirious? If they keep hiking in the new year (which they will because hikes will have no effect on lean supply chains and energy prices) there will necessarily be a slowdown. A 15bp move itself isn’t significant and real rates are still deeply negative but that does not seem positive for UK equities?