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Fear, Greed or Prudence? Reacting to Market Volatility
By Fatty Finance  •  March 3, 2020

The market has bounced back with vengeance. And then it dropped again. It was certainly a very volatile week.

On Monday, the market rebounded due to expectation of rate cuts. Then on Tuesday it dropped again. On Wednesday, it rebounded again due to Joe Biden’s performance on Super Tuesday. Then on Thursday it dropped again when California declared a state of emergency.

How should we react?

#1 Fear

Fear, a natural primal instinct, has helped our great great ancestors survive.

When we sense danger, the two fear hormones Cortisol and Adrenaline are secreted giving us heightened awareness, more blood pumping throughout our body and more energy to fight or flee.

Likewise when the market drops, the fear response kicks in and

...
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By Fatty Finance
My aim is to simplify finance and make it palatable for everybody. I gather only the freshest financial trends and topics, mix them together with economics, health, business, science and other quality ingredients and stew them over long hours to serve you the simplest and most wholesome meals. As this is a fairly new blog, I will be focusing on writing investment topics for now. I intend to talk about all aspects of personal finance and will continue to expand each sections as the blog grows.
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