The Scary Costs of Fight-or-Flight Investing

A couple weeks ago I was talking with a friend.  He told me that this March, after the stock market had lost over 30% in just a few weeks, he called his financial adviser and told him to sell all his stock positions and hold all the proceeds in cash. The adviser did as he was told.

Three months later, after the market recovered nearly all of its losses — as of this writing — my friend is experiencing a classic case of “seller’s remorse.”

Now, it’s easy to look back and say, “Well, your friend shouldn’t have done

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