Hi Clive, Re: Fishing in the deepest waters............
Whether you'd been ok to take cash that had been accumulating separately (dividends and interest) to add back into the GE AIM however is another matter (with GE share price crashing through the floor I suspect you'd at best had some reservation of 'adding' even more into GE at that time).
While I still have a few pages left to read, JDerb had recommended "The Most Important Think" by Howard Marks to me some time ago. (ISBN-10: 0231162847 , ISBN-13: 978-0231162845) This book is so well written I savor every page. Mr. Marks discusses your very point - that during the worst of a panic, fear overcomes reason and keeps people from doing what actually is best for themselves.
Throughout his book he describes both offensive and defensive investing. He is by far an advocate of defensive models and portfolio designs. His basis is the fact that 50/50 is about as good as one can guess on most things and that much is beyond the investors' control. He advocates knowing where we are right now rather than guessing at the future. He also advocates strong fundamental study of investments.
His is a provocative study on risk control, not risk avoidance.
If you or any of our other AIMers are looking for an interesting and well written tome on contrary investing, this is one that will remain high on your list of favorites for a long time.
Best regards,
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