The Shock Market

Whenever American stocks inevitably start to correct to reflect what they are truly worth, many investors will be in for a bloodbath. With so many people seeking something that would yield when safer vehicles like savings accounts were yielding nothing, many bought shares. Some of them have never seen (been invested) through a crash. When the coming correction erupts, these novice investors will panic and sell, when they should be bargain hunting and buying. They will act hastily and sell, trying to preserve as much as they are able, but perversely will drive markets down that much more because they panic. Stalwart investors steady themselves through the rough times, but they will be a pronounced minority when the correction happens.