Even though it’s precisely what many financial advisors tell their clients not to do, it’s understandable that a tanking stock market scares some people into cutting their losses and selling their shares. Understandable, maybe, but it wouldn’t be off-base to guess that those who divest are inexperienced or too poor to weather market volatility.
But a new paper that looks at assets sales during the financial crisis suggests that that might not be a totally accurate representation of who sells during a crisis.
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