Optimism in credit taking can lead to trouble
October 21st, 2009
Sometimes other character defects are disguised as patience. Overly optimistic investors are often mistaken for patient. Investors who rationalize away all negatives or who refuse to accept losses appear to be patient.
Unjustified patience combined with blind loyalty is common among those who bought tech stocks in the bubble only to see them become penny stocks in the tech wreck. Many of these investors loved the product or the idea the company represented. They bought the stock, knowing nothing of stock investing. Patience and loyalty caused them to hang on, until the company’s bankruptcy, if necessary. Many band together in chat rooms and bolster each other’s loyalty during the long decline toward de-listing of the stock.
Tags: Annuities, banking, banks, Bearish Patterns, Budgeting, cash, company costs, currency cycles, debt, loans
Categories: business ,debt ,loans ,real estate