During the Great Recession of 2008-2009, stock markets fell about 40%. Which of the following best indicates the short-term thinking by investors during this period of widespread financial turmoil?

Question

Quizplus · Accepted Answer

During periods of financial turmoil, investors often seek safety in companies that offer high dividend yields, as these can provide a source of income even when market prices are falling. This preference reflects short-term thinking aimed at immediate returns rather than long-term growth potential.

During the Great Recession of 2008-2009, Stock Markets Fell About