Bloomberg
April 9, 2014
For many years, I have studied human behavior, including the mistakes occasionally made by fallible people, including investors.
But a few years ago, I made a really dumb investment decision. In a single day, I hit the trifecta, committing at least three classic behavioral mistakes.
The year was 2011. The stock market was recovering well from its terrible collapse during the Great Recession, but over a short period it had a series of stumbles. I got nervous. What if it collapsed again?
At the time, I was working in the federal government, with a daughter in college, a 2-year-old boy and a new child on the way. Could I afford to lose a lot of money? Wouldn’t it make sense to sell equities and to put the money into a safe, reliable certificate of deposit?
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