Revenge spending is the money you drop to make up for lost time, so to speak. It's the big vacation you book to make up for the trips you missed last year, or the new furniture you buy after putting up with your getting-on-in-years sofa during the pandemic.
And while a little splurging after months of careful saving (or unwilling saving, because there wasn't much to spend on) is perfectly understandable, going overboard as a sort of self-comfort or revenge for everything you gave up in the last year can hurt you in the long run.
New research revealed that the biggest investors in the world don't make the best decisions when selling stocks.
This came to light when an investor's stock selling decision was compared to a strategy which is almost like throwing a dart at a list of names that exist in their portfolio. If their clients had instead hired the monkey with darts to randomly choose which stocks to sell, the client's portfolios would have earned 0.8 percentage points more per year.
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