Sunday, July 13, 2008


Pick a side
bull bear market emotion

The battle between fear and greed rages on. Turn on CNBC and you only hear about these two emotions. Rational thinking and market analysis is taking a backseat to pure speculation and conjecture.

There is rampant fear about how bad it is going to get. This emotion drives selling, panic and despair. And this emotion is not limited to the retail investor like you and me, it is pervasive as evidenced by the daily market sell offs.

The other camp touts greed - time to bottom pick. This emotion drives the exhilaration of getting a bargain, the need to buy and accumulate what is deemed cheap. Multiples are ridiculously low, we are still not in a recession, global demand is high and as usual the market is over-reacting.

Time will tell if this was a good time to be fearful, greedy or just a spectator.

(Photo courtesy - Flick)

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