It is an unfortunate and sad reality that most people do not like to think for themselves if even at all. That is why television reality programs and entertainment news shows and television itself for that matter are so popular: it gives people a break from thinking about their own lives and gives them the opportunity to watch others live their lives. The same attitude has moved into the investing practices of many individuals as well.
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People sell their stakes in investments for a number of reasons. Some do it because they have a fear of losing money. Others do it because they want to harvest tax loses. Some people panic and take every piece of news (or hearsay) at face value rather than taking the time to dig a little deeper in order to find their own guidance. The thing that many people do not do is follow the same reasoning when selling stocks as they did when they made the initial purchase. Too many people let their feelings and emotions affect their investment decisions, which is one place that rational, level-headed decision making is vital.
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For some reason, the idea popped into my head to look into how the consumer sentiment is figured. You know, those surveys done by the University of Michigan and The Conference Board which tell us what consumers feel about their situations and the economy, and which ultimately turns the markets one way or the other based upon the results. The last part is what bothers me. The fact that a simple survey can affect so many is fairly unsettling to me, and I was curious as to just who these people were that have the power to change the direction of our investments. The answer almost knocked me off of my chair.
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