Problem with Complete powerlessness
Panic has a bad reputation as an investment emotion. Brokers, mutual fund companies, journalists, and others who profit from the stock market know that panicked investors often avoid stocks for decades. They portray panic as the worst response to powerlessness in all circumstances. However, panic is a healthy response to many powerless situations. Investors who panicked out of the stock market in 1929 at the low reacted well. The market continued down for three more years and never returned, on a sustained basis, to the 1929 low until the early 1950s. Tech investors who listened to the stock promoters and did not panic in April 2000 made a grave error. Many still sit on tech stocks that are worth a fraction of what they were in March 2000.
For the emotionally mature, powerlessness is a relief. There is great freedom in recognizing powerlessness, surrendering, and moving on. For the immature, powerlessness can lead to desperate acts, usually selfdestructive. Consider how you react to powerlessness.