Based on the current situation (writing as of 10pm Wednesday night with futures showing more selling on Thursday), stepping in to buy at these levels is hardly an easy choice. But, the reality is shocks like the one yesterday coupled with the past few days have a hard time lasting in the current economic environment.
People are still plagued by the trauma of 2008. Ten years later, even after the incredible gains off the March 2009 low, there are still those with a hair trigger who think any setback is the beginning of another 50% sell off. While some further lows are not out of the question, it’s hard to see a catalyst for a sustained push lower like the one that came today.
Charlie Bilello of Pension Partners has this epic tweet…
Look, investing is hard. It’s hard because it’s emotionally difficult to see money shrink. It’s emotional because as humans we are programmed to DO SOMETHING even when the smart thing is to do nothing.
Remember this – for every single share of stock that is sold, there is someone buying that share. Are the foolish ones the sellers or the buyers?
Keep looking forward,
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