Investment Properties Best Bought Without Emotion
- Jason Hartman for Activerain.com April 20th, 2011
- Source: http://activerain.com/blogsview/2255525/investment-properties-best-bought-without-emotion
According to a recent study on investor timing when it comes to buying and selling assets, we suggest you open a can of Mr. Spock on your strategy. Remember Mr. Spock? The half-human, half-vulcan first officer aboard the original Star Trek television series starring that guy in the Priceline ads before he became a caricature and national treasure? According to the New York Times, Philip Z. Maymin, of the Polytechnic Institute of New York University, studied call records at an investment boutique over the course of 17 years.
His finding was that, left to their own devices, most investors can pinpoint with almost uncanny accuracy the precisely worst time to buy or sell their assets. This study was concerned with the stock market, so what does that have to do with investment properties? The truth is that a human being is a human buying and, whether buying stocks or investment properties, the emotions that drive us into hasty action are the same.
The interesting conclusion reached by Maymin was that the greatest value provided by the boutique firm in the study was in talking investors out of their planned course of action. In other words, stopping them from rushing in with an emotionally charged decision.