Market Sell-Off: Why Investors Should Resist 'Dangerous' Impulses
2025-04-04
CNBC
As the market experiences a significant sell-off due to tariffs, individual investors are advised to avoid making impulsive decisions. Behavioral finance experts warn that a big market downturn can trigger a fight or flight response, leading to poor investment choices. It's essential to remain calm and rational, rather than giving in to emotional instincts. By doing so, investors can make informed decisions and avoid common pitfalls, such as panic selling or reckless speculation, and instead focus on long-term investment strategies and portfolio diversification. This approach can help mitigate potential losses and optimize returns in a volatile market.