How you feel about a losing investment depends on who you can blame. Regret is strong when there is no one to blame but yourself. Cognitive dissonance plays a role too. Whether you need to avoid regret then drives what you do with the investment: buy, sell, or hold.
The chances of catching and dying of Ebola in the U.S. are minuscule. Far less than dying from lightning or a ladder. Yet some people are feeling anxious and a few may even panic over Ebola. I describe why Ebola seems scarier than your bath tub.
10,000 baby boomers are retiring per day. The social insurance programs already have a deficit. Can the bond markets absorb the trillions of dollars of new debt to fund these programs over the next two decades and beyond? How will it impact interest rates and our economy?
Soccer sentiment in many countries is so strong it impacts their stock market. Get eliminated from the World Cup, see a decline in the stock market the next day. Has US soccer sentiment risen to that level?
President Obama's proposed budget includes an increase in taxes on capital. That won't be very useful in generating tax revenue in the short-run. But it will also make fixing the broken economy even harder.