The Stock Markets in Turmoil Eh?
The great Warren Buffett says "Be greedy when people are fearful and be fearful when people are greedy". Such a simple principle obviously. But decades after these words were uttered by the Oracle of Omaha, no one seems to get it.
Short analysis of what causes people to not act the way Buffett postulates!
We are all human beings of course, but we are wired to follow the crowd as social animals. Even if we know we are right in the inner self, we actively doubt ourselves whenever we are the outliers.
I think, we just need to do one single thing, that we can all do without being very disciplined. Just promise ourselves to not stretch our portfolios into margin accounts.
Also we need to take profits at overstretched levels and avoid FOMO (the fear of missing out).
Anything that goes up fast is going to come down, be it the great Amazon or the great Apple.
The world is not coming to an end, at least in our life times and the same can be said about the US Stock Markets.
Short analysis of what causes people to not act the way Buffett postulates!
We are all human beings of course, but we are wired to follow the crowd as social animals. Even if we know we are right in the inner self, we actively doubt ourselves whenever we are the outliers.
I think, we just need to do one single thing, that we can all do without being very disciplined. Just promise ourselves to not stretch our portfolios into margin accounts.
Also we need to take profits at overstretched levels and avoid FOMO (the fear of missing out).
Anything that goes up fast is going to come down, be it the great Amazon or the great Apple.
The world is not coming to an end, at least in our life times and the same can be said about the US Stock Markets.
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