The Temptation to Sell High
High share prices can spook investors and cause some to question whether they should switch to cash. Surveys of professional investors show that most are holding record levels of cash and many are increasing holdings of gold bullion, another sure sign of fear in the market.
Investors are often tempted to sell during periods of volatility or downturn, but this is often when the best days of the market typically occur.
History highlights the danger of being out of the market for those periods, often exceedingly brief, when gains can be made.