Today is a great opportunity for newer investors to learn...

Today is a great opportunity for newer investors to learn something.

It’s called capitulation. That’s when investors who react to the short term ( 24 mths or less ), news/projections/share price panic and sell.

The way the bids/offers worked over the last 3 hrs is a great example. Panic! All the way down to 20~% above the 12 mth low. As soon as it hit the bottom of that range & the offers to sell dried up, buyers started stepping back in have kept buying what is being dropped on them.

It’s also how the media reacts, as noted in my other post today. The media that told us the world was likely to end for we humans thanks to environmental etc disasters multiple times. The 50’s, the late 60’s, the 70’s, the 80’s, the year 2000. Then again in the 2,000’s, 2012 & sometime around 2020.

What happened when short covering pushed nickel to $100,000 a tonne for a moment 2 years ago & concerns about cobalt pushed it to $80,000 a tonne 5~ years before that? Retail investors bought like their life depended on it.
Now they sell like their lives depend on it.

A healthy question is this- how many times has the world actually ended in your lifetime? If you’re reading this then the answer must be zero.

This post might actually upset some who have sold today but 25~ yrs of experience tells me that some will remember the message when things recover. It isn’t my idea- it was passed on to me many years ago. Some who read it might pass it on themselves, in years to come.

None of this is advice. It’s just passing on a view has paid the bills every year it has needed to.