Greed and fear drive many investment decisions from "summary" of Contrarian Investment Strategies in the Next Generation by David Dreman
Investors are often influenced by powerful emotions that can cloud their judgment and lead to poor decision-making. Greed and fear are two of the most common emotions that drive investment decisions. Greed can cause investors to chase high-flying stocks in the hopes of making a quick profit. This can lead to buying assets at inflated prices and ignoring fundamental factors that indicate overvaluation. On the other hand, fear can cause investors to panic and sell their investments during market downturns. This can result in selling assets at depressed prices and missing out on potential gains when the market eventually recovers. Both greed and fear can prevent investors from following a disciplined investment strategy and sticking to their long-term goals. Suc...
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