Patience Pays Off

Jul 2011 //
Optimism/Pessimism
Patience
Behavioral Finance

However, excessive optimism and excessive pessimism—bred by the same “this time is different” mindset—led to excessively high or low stock prices.  Depending on your perspective, this is either good or bad news.  It’s bad news if swings in investor sentiment cause you to buy high and then sell low.  Yet it’s good news for patient investors who know what they’re doing.