The terror comes from not knowing. Not knowing where the waves of selling are coming from, not knowing when it will end, not knowing if you have enough money to retire on, not knowing if you will retire, not knowing what else is out there. At least that's what you get from these headlines. I've been doing this a long time and still have to fight panic. It helps to have a discipline, experience, and a sense of history.
Fear Trumps Greed as Market Woes Paralyze Economies
...Investors are in the grip of a panic that psychologists and historians say isn't necessarily rational and may intensify. They aren't buying stocks, and more importantly, suddenly afraid they won't be repaid, they aren't making loans by buying bonds. Banks have also tightened credit.
``People are driven by images of the best and worst that can happen,'' says George Loewenstein, a professor of psychology and economics at Carnegie Mellon University in Pittsburgh. ``The image of the worst is much more vivid in their minds right now.''...
From the Associated Press:
From Market Movers:
From 24/7 Wall Street:
From the Kirk Report:
From The Financial Times:
From the Wall Street Journal: