The extremely first episode of Financial Decoder went over the sell decision– in part due to the fact that there are many cognitive and psychological predispositions that enter into have fun with that decision. Many people are vulnerable to something called the disposition impact, which is the tendency to sell possessions that have increased in worth but hold on to financial investments that have dropped in value.
In part one of this special two-part episode, Mark Riepe examines the choice of when to sell an individual stock and an individual bond. First, Mark talks with Kathy Jones, Schwab's chief set earnings strategist. They go over whether or not you must sell a bond if it's been devalued, if you must offer before the bond's maturity date, and how defaults and insolvencies might affect your choice, to name a few topics. Next, Mark talks to Steven P. Greiner. Steve is a senior vice president and head of Schwab Equity Rankings. Steve and Mark think about whether you ought to offer a stock based upon changes in its fundamentals, such as P/E ratio and dividend yield, as well as how to react to bad news and huge swings in the market.
Part two of this episode will analyze the decision of when to offer a mutual fund and an exchange traded fund, or ETF..
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