Here’s an interesting take amidst the recent flux of economic meltdown headlines. A New York Times article details fear as the overarching decider when individuals are deciding to pull out of stocks.
… the market has become a case study in the psychology of crowds, many experts say. In normal times, it runs on a healthy mix of fear and greed. But fear now seems to rule, with investors often exhibiting a Wall Street version of the fight-or-flight mechanism — they are selling first, and asking questions later.
So, it appears that the real troubles on Wall Street are only half of our problems. The other half is us, exacerbating financial woes onto our everyday lives as our actions are becoming more and more dictated by the thought of a possible recession.
But when can we have a more definite answer? after all, it’s mostly uncertainty of profit that’s causing the Wall Street fear. The article closes with this:
Investors will regain confidence when they believe financial firms are adequately capitalized and money is flowing more freely through the financial system.
Guess we’ll just have to wait and see…
