Over-Compensation?

o·ver·com·pen·sa·tion/ˈoʊvərˌkɒmpənˈseɪʃən/ [oh-ver-kom-puhn-sey-shuhn]

1. striving to neutralize & conceal a strong but unacceptable character trait by substituting for it an opposite trait.
2. compensation to an unnecessary or unreasonable degree; Excessive in the exertion of effort needed to compensate for a physical or psychological characteristic or defect.

3. an attempt to overcome a real or imagined defect or unwanted trait by overly exaggerating its opposite

4. the exertion of effort beyond what is needed to substitute for a physical or psychological characteristic or defect.
5. An extreme neurotic striving for power or prestige because of a feeling of inferiority.

Yesterday, I posted something about over-confidence. Today's the opposite. Now, that's a little bit too OCD (Obsessive-Compulsive Disorder), isn't it buddy?

Looks like this is going to be the case for a lot of investors. Why?

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When the market dives, I don't think they will have sufficient time to unlock their positions.

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This picture also reminds me about those who choose to play it TOO SAFE; the non-investor group. This group typically keep their assets in cash and cash only. To them, investment is a dirty word. They are overly-concerned with capital preservation, at the expense of capital erosion. They don't realize that NOT investing is also a risk!