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Don’t Make Me Say I Told You So 143

Please insert chart #129 INVESTORS GOING THE WRONG WAY. It's in
our shared Dropbox folder.
Fear and Greed

There are two basic drivers when investors make decisions: fear
and greed. These are both powerful motivators, and fear is the

stronger of the two. Many investors who put together a long-
term, well-thought-out investment plan ditch that plan when

they’re afraid they’ll lose money. As Jeremy Siegel, a Professor of
Finance at the Wharton School of the University of Pennsylvania,

has said, “Fear has a greater grasp on human action than does
the impressive weight of historical evidence about the market

and the economy.” People forget about the facts surrounding
investing in the stock market, and rely on their feelings and

emotions to guide them.

Chapter 4: The Most Common Investor Mistakes