Slow Sinkers Are the Real Stinkers: Why a Plummeting Stock Price Can Be Better For Investors Than a Gradual Decline

Neil Brigden, University of Alberta, Canada
Gerald Häubl, University of Alberta, Canada
Holding financial assets that perform only moderately poorly can have more negative implications than holding assets with rapidly declining value. While investors sell plummeting assets quickly, they hold “slow sinkers” for too long. Thus, having an asset they own decline sharply can ironically render consumers wealthier in the long run.
[ to cite ]:
Neil Brigden and Gerald Häubl (2012) ,"Slow Sinkers Are the Real Stinkers: Why a Plummeting Stock Price Can Be Better For Investors Than a Gradual Decline", in NA - Advances in Consumer Research Volume 40, eds. Zeynep Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 743-744.