Nice explanation by Vanguard CIO Sauter

I like this excerpt from a Q&A with Vanguard CIO Gus Sauter, "Timeless lessons: Sauter reflects on market volatility in ('87 and '07)" In The Vanguard (Autumn 2007).p. 4.

When something goes on sale in the grocery store, people rush to buy it. When something goes on sale in the stock market, people rush to sell it.

Sauter uses this to explain why people buy high and sell low.

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Susan B. Weiner, CFA
Investment Writing
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