very very good news from mexico, page-7

Benjamin Graham, said it clearly in The Intelligent Investor, "Don't get carried away by enthusiasm. Don't get carried away by despondency. ...Know in advance that you are going to have to live through bear markets."

Let me re-tell Graham's parable from his book, The Intelligent Investor.
Imagine owning shares of a small business that cost $1,000, and every day your partner named Mr. Market knocks at your door and announces what he thinks those shares are worth that day. He offers either to buy your shares or sell you more at that price. Even though the business is trudging along without significant change, each day his opinion is wildly different. Frequently Mr. Market's enthusiasm or his fear seems completely divorced from anything happening in the business and his valuation seems ridiculous. One day he offers to buy or sell you shares for $2,000 each, and a week later he makes the same offer for $500. Should you let Mr. Market's wild enthusiasm or shaking fear determine your view of the intrinsic value of the business?

That's obviously irrational. As Graham puts it:

The investor with a portfolio of sound stocks should expect their prices to fluctuate and should neither be concerned by sizable declines nor become excited by sizable advances. He should always remember that market quotations are there for his convenience, either to be taken advantage of or to be ignored. ...He would not be far wrong if this motto read more simply: "Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop."

Since we can never know in advance whether shares will be higher or lower tomorrow, the only rule to follow is to accumulate them when they are significantly underpriced by value analysis. Mr. Market is definitely letting his fear override his reason, and is making us offers that become increasingly difficult to refuse. As was the case after 1929, there are great opportunities being born out of the chaos. Don't let Mr. Market's trembling hands cause you to lose sight of the outstanding values SBN is offering.