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In the investment world, not reacting immediately to sudden market changes is a sign of

a) Neglect
b) Inexperience
c) Pride
d) Wisdom

1 Answer

3 votes

Final answer:

Not reacting immediately to sudden market changes in the investment world is considered a sign of wisdom. It suggests a disciplined, long-term approach to investing that leverages patience and analytical thinking over emotional and hasty decisions.

This correct answer is d)

Step-by-step explanation:

In the investment world, not reacting immediately to sudden market changes is often considered a sign of wisdom. This approach is indicative of a disciplined investment strategy that accounts for the inherent volatility in markets.

Rather than making hasty decisions that may be influenced by emotional reactions to short-term market fluctuations, experienced investors often recommend a more measured and analytical approach. They understand that markets move in cycles and that patience can sometimes yield better long-term results.

Therefore, the correct answer to the question, "In the investment world, not reacting immediately to sudden market changes is a sign of what?" is d) Wisdom.

This reflects a mature understanding that immediate reactions can lead to overtrading, increased costs, and potential deviation from a planned investment strategy.

This correct answer is d)

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