David Twibell, president and founder of Custom Portfolio Group, was quoted in an article “Investors Rarely Trade Their 401(k)s, Even During Recent Selloffs.”
Investors rarely trade or even rebalance their 401(k) accounts, and their complacency could be saving them from making hasty decisions such as rushing to divest their assets by following the herd during the recent market selloffs.
Prompted by fear and following the masses, some investors do fall prey to the hype and sell their stocks at the wrong time, only to sit on the sidelines for too long. Whether they wind up moving their money into bonds or cash, many wait for the market to rebound before getting back into it. Being driven by greed is never a good reason to get back into the market, especially if it turns out to be at a high point.
