Money Management Of Today And Its Effects On The Stock Market…

Money Management Of Today And Its Effects On The Stock Market... by Lukas Neely, Investor Vantage

You cannot ignore the market – ignoring a source of investment opportunities would obviously be a mistake – but you must think for yourself and not allow the market to direct you. 

-Seth Klarman

[klarman]

THE STOCK MARKET IS A PRODUCT OF HUMAN ACTION…AND HUMAN ACTION CAN BE HIGHLY IRRATIONAL, FEARFUL AND GREEDY AT TIMES.

As long as humans control the decision-making process in the stock market, the stock market will continue to act like humans. Human emotional action and reaction creates unpredictable cycles of excitement, fear, depression, euphoria, calmness, action and inaction. As humans we are driven by many things, incentives being among the...