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09:46
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Originally posted by MrBenny
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Be greedy when others are fearful and fearful when others are greedy. During market turmoil and panic, the contrarian long term investors use this opportunity to stock up on good quality businesses that have strong fundamentals. The market will price these businesses lower than their true value which makes them more attractive in the long term. Noone can predict the ST price movement but in the LT the price will follow when the markets sees the true potential of the business through its earnings etc. By that time the SP will rally and it's too late to get in. Right now it will get beaten with a stick until there is no rational beating left...but eventually, this irrationality will stop and turn around. Its hard to watch the SP tank but you are investing in a business, don't forget. The SP is not reflective of the current state of the business but more so the market sentiment of the masses.
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MrBenny, you are so right. "you are investing in a business, don't forget. The SP is not reflective of the current state of the business but more so the market sentiment of the masses. ".
