Our experience is similar to a pendulum swinging:


• From excitement to frustration;
• From cheering and celebrating good news to worrying and anxious about bad news;
• From prices being too high to prices being too low;
• From greed to fear;
• From optimism to pessimism;
• From risk tolerance to risk aversion;
• From trust to doubt;
• From believing in future value to insisting on tangible value now;
• From eager buying to panic selling.
This phenomenon of swinging from one extreme to another is the most certain characteristic of the investment world. Investors' psychology is like a pendulum, often swinging to extremes—either toward one extreme or the other. Investors rarely stay at the center, seldom walking the path of moderation that brings happiness and contentment.
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