The History and Psychology of Panic-Selling
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.
Click here to read the December issue of Lazard Perspectives.
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