When fear is your friend

Listen to Dave’s commentary: When fear is your friend

You never know from day to day what shiny bauble will catch the eye of investors, but when it’s bad news, you can bet that large numbers of people will overreact.

The pros will warn them not to panic:

“Control the emotion. Over the next few days you’re going to have a lot of naysayers come out and predict doom and gloom. Try to ignore that. That has very little impact because what we found is most of the time they’re wrong anyway.”

But history teaches us that most people will not listen to that advice from CHARLES MASSIMO of CJM Fiscal Management.

Which is why if you know what’s REALLY going on, fear…is your friend.

OTHER people’s fear:

“If you look at GDP and if you look at what’s going on around the world, it really is not as bleak as people want to make it appear.”

Not as bleak as people want to make it appear. And why would people WANT to make it appear bleak? For the same reason that 50 years ago developers would start whisper campaigns that non-white people were moving into the neighborhood. To scare homeowners into selling cheap.

I’m going to say this only once, because if too many people hear it, it will only spoil the game:

The way to make money when the market finally goes up — is to have bought stock from someone who’s scared.

Which is why, should you find yourself in a news environment that has a large number of people panicking…you might just want to consider, but I’ve already said too much.

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