Are Stock Investors Spooked?

in money •  7 years ago 

I turned Bloomberg on today for the closing bell. Typically, I ignore the mainstream financial news and only occasionally tune in to see what the talking points are.

The newscasters were interviewing Nobel Laureate Paul Krugman and sharing snippets of a talk from fellow Laureate Richard Thaler. Both Nobel Laureates noted that investors are spooked right now and that there are only a few statistics showing growth signals.

I found the analysis amusing in light of an article I just read from Warren Buffett. In the article, Buffett summarizes the Security Analysis principle of buying businesses for 40-50 cents that have a dollars worth of assets.


That basic value proposition simplifies all the noise we can hear on a daily basis. The numbers never lie.


While I am not saying to buy a business or stock only for its discount (there are some Bear Stearns or Enron price dips to avoid).

The point is that right now, there are few values to find, and that a cash position may be the wave to ride in my opinion.

Everything moves in waves and cycles, and learning to read those waves while avoiding the sheeple mentality can serve you and your family well.


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Video Source: Mike Maloney and Harry Dent

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time to ride those waves haha :D

Oh yes.

I'd go by what Warren Buffet said - that man is commonsensical and perceptive

That is the truth.

"Be fearful when others are greedy....

It is really hard to know how to play. Shorts have been punished ... and if you read this it seems the value of cash may also be decreasing as well.

https://steemit.com/money/@thehutchreport/the-illusive-market-crash

How do you win in this market (other than the time machine of going back a few years).

Great question. I have been playing dividend funds like a CEF. At the the moment though, I am out of stocks.

Calling @originalworks :)
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Interessing post thank you