Perspectives — Lazard Asset Management

The History and Psychology of Panic-Selling

November 28, 2022

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History suggests that panic-selling is counterintuitive. Downturns — whether corrections, pullbacks, or bear markets — tend to follow a predictable rhythm, with recovery typically following just a few years behind major dips in asset prices.

 

The latest issue of Perspectives explores the concept of panic-selling and finds that investors who sit with the discomfort of a downturn and remain focused on the long term — even while everyone around them flees — tend to benefit from doing so.

Read here the December issue of Lazard Perspectives.

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