When Do You Cut Your Losses? - 04/30/11 04:58 PM
Years ago I received some advice from my financial planner. He told me that it is human nature for investors to hesitate selling their stock when the price is going down. They want to wait for the stock to return to its original value and then sell for a profit. It is hard to part with a loser.
The same psychology also affects homeowners as they look at the declining value of their home.
They have equity in their home even though it has decreased. They look at the amount of time it would take to see their home price come back … (3 comments)