Here's What Happens When You Panic and Sell Your 401(k) Investments
Philosopher Daniel Dennett said, "As every scuba diver knows, panic is your worst enemy: When it hits, your mind starts to thrash and you are likely to do something really stupid and self-destructive." His conclusion is, of course, not exclusive to scuba diving -- and is particularly relevant in the current stock market environment.
On Feb. 12, the Dow Jones Industrial Average closed at 29,551. A month later, the blue-chip index has dipped below 22,000 -- a drop of about 25%. Fueled by coronavirus fears and uncertainty around oil prices, investors dumped their holdings to limit losses.
Image Source: Getty Images.
Source Fool.com
