Ken Fisher on the Dangers of “Breakevenitis”

At Fisher Investments we believe making investment decisions when you are in a heightened emotional state can lead to costly mistakes. In this video, firm founder Ken Fisher considers the emotions behind “breakevenitis”—the tendency to want to sell out after your investments have recovered their losses—and explains why it can be dangerous.

When the stock market drops steeply and then rebounds to close to the prior high investors may want to sell out of their investments at what feels like a breakeven point. Ken Fisher reminds viewers of the old saying, “Don’t get mad, get even.” However, when it comes to markets the desire to break even is often a reaction to getting mad. Ken Fisher explains that steep market drops are terrifying and they can lead to anger that you didn’t see the drop coming beforehand. Investors sometimes blame themselves and sometimes others, but the result can be the same: A desire to sell out of the market at a breakeven point so they will no longer have to worry about the next downturn.

While this may temporarily improve your peace of mind it can also be a costly investing mistake. Once a new bull market begins, it tends to run for a pretty long time. Investors who opt to sell when the market reaches a prior high can end up missing out on substantial returns.

If you would like to learn more of Ken Fisher’s and Fisher Investments’ thoughts on the current environment and where markets could go from here, visit us at https://www.fisherinvestments.com/en-us.

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Видео Ken Fisher on the Dangers of “Breakevenitis” канала Fisher Investments