When times are good the crowd is happy and fully invested. But it gets to as point where everyone who wants to buy has. This leaves the market vulnerable to bad news because there is no one left to buy. Similarly, after a sharp fall the crowd gets negative, sells their investments to the point that everyone who wants to sell has and so the market sets up for a rally when some good, or less bad news, comes along. So the point of maximum risk is when most are euphoric, and the point of maximum opportunity is when most are pessimistic. But for many investors trying to sell when the market is booming and all around you are euphoric is tough. As is trying to buy after the market has crashed and everyone is pessimistic.
Julie's Blog Posts
Congratulations to our favourite AFL Team in the competition! The Tigers won the grand final after a big year with plenty of injuries to overcome. Congrats to a team that embrace family, giving it your best, not taking yourself too seriously, guts & determination. #GoTiges!
If you have 4 minutes to spare - click the below link and listen to Dick Morris explain why he thinks the US are in the driver's seat with the tariff war with China. Doesn't mean the ride won't be bumpy though! Take a listen....
My favourite quote on Investment Predictions...
"Even a broken clock is right twice a day".
The way to wealth for those in the business is to persuade their clients, 'Don't just stand there. Do something".
But the way to wealth for their clients is to follow the opposite maxim:
"DON'T DO SOMETHING. JUST STAND THERE"
One of my favourite quotes from the recently passed founder of Vanguard , Jack Bogle, the man that helped bring Index Funds to the masses.
RIP Mr Bogle.