Reported about 1 month ago
Despite advice to remain calm during stock market downturns, 401(k) investors tend to sell off their holdings in response to market volatility. A recent report highlights that trading among these participants surged during recent market drops, as many opted to move their funds into safer investments. This behavior is attributed to psychological factors like recency bias and loss aversion, leading investors to react forcibly rather than maintaining a long-term, stable investment strategy.
Source: YAHOO