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Mistake 1: <\/strong>\u00a0\u201cLet\u2019s sell for now and wait for the dust to settle.\u201d\u00a0 \u00a0<\/strong>
\nThe equivalent for cash-rich investors would be \u201cLet\u2019s keep the cash and wait for the dust to settle\u201d. The S&P500 has rebounded by more than 108% since its low on March 23, 2020 and most investors that have not bought are still in waiting mode.<\/p>\nAn alternative view:<\/strong> Instead of waiting, it is much better to build a solid exposure structured around well-defined investment themes, such as the US market.<\/p>\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\n\n
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Mistake 2: \u201cThe market is wrong.\u201d\u00a0 \u00a0 \u00a0 \u00a0<\/strong>
\nNo, it is not. It is us as individuals who are wrong. At any point in time, the market simply discounts all public information available (the fundamentals) as well as investors\u2019 psychology (momentum).<\/p>\nAn alternative view:<\/strong> Never fight a trend. Most of the time, we understand several weeks\/months later why the today\u2019s market trades at current levels.<\/p>\n <\/p>\n
Mistake 3: \u201cThis time is different.\u201d\u00a0<\/strong>
\nNo, it is never different. We may have felt this way because we were recently experiencing an unprecedented experience due to the pandemic, but the context is always different.<\/p>\nAn alternative view:<\/strong> What never changes is our behaviour or our reaction, which is always based on greed and fear.<\/p>\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\n\n
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Mistake 4: \u201cI cannot sell this stock at such a loss. Let\u2019s keep it for a while and see what happens.\u201d\u00a0\u00a0<\/strong>
\nAvoiding a loss (and keeping zombie stocks) is one of the worst strategies ever, in my opinion. \u2026 An unrealised loss is still a loss.<\/p>\nAn alternative view:<\/strong> A crisis changes the world.<\/p>\n <\/p>\n
Mistake 5: \u201cBuy low, sell high.\u201d\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/strong>
\nParticularly in a positive market environment, you tend to have a contrarian approach and only buy stocks that trade at a low level.<\/p>\nAn alternative view:<\/strong> A much more effective strategy is to \u201cbuy high, sell higher\u201d.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"Top 5 common blunders that investors may encounter during a crisis. Origen: Avoid these 5 investment blunders during a crisis Mistake 1: \u00a0\u201cLet\u2019s sell for now and wait for the dust to settle.\u201d\u00a0 \u00a0 The equivalent for cash-rich investors would be \u201cLet\u2019s keep the cash and wait for the dust to settle\u201d. The S&P500 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[28,32,26,5,29,303,42,176,37,166],"tags":[299,11,305],"class_list":["post-4631","post","type-post","status-publish","format-standard","hentry","category-cosillas-empresariales","category-economia","category-el-critico-como-artista","category-financial","category-gestion","category-investors","category-psicologia","category-strategy","category-tendencias","category-trends","tag-economy","tag-finance","tag-investors"],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts\/4631","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/comments?post=4631"}],"version-history":[{"count":1,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts\/4631\/revisions"}],"predecessor-version":[{"id":4632,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/posts\/4631\/revisions\/4632"}],"wp:attachment":[{"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/media?parent=4631"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/categories?post=4631"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/silta.es\/juantatay\/wp-json\/wp\/v2\/tags?post=4631"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}