Investor Sentiment Chart
I got this from REIT blogger and I was really tickled by how true this is to our actual investment self!
The green line actually shows the share market line which will also typically draws the type of emotions as stated above.
I have also been guilty about this at some point of my life, actually even now at times! There is always the thinking of “buy, buy, buy” when the market is going up despite knowing that it is extremely dangerous to jump onto the bandwagon.
And then when the market tapers off, we say, “aiya, slight correction only, let me see how tomorrow”. And when the market really corrects and head south, the usual line would be “never mind, I hold, else I just buylo”
And at the real bottom, we decide to sell, only to see the market rebound the next day! And then, feeling really pissed (with ourselves, the market, the neighbour etc.), we will go “Stupid market, I think next time I won’t invest anymore la”.
And then the CI hits 1,000 points and the whole cycle goes again! What about you? Do you see any resemblance between this chart and how you feel?
