VOO - Be Greedy When Others Are Fearful Even If They Are Fearful For A Good Reason
2024-04-22 13:04:43 ET
Summary
- Heightened geopolitical risk has caught investors flat-footed over the past week.
- A historical analogy is presented of the Cuban Missile Crisis, a time of even greater geopolitical risk.
- In the short term, selling pressure in the market is likely.
- Long-term investors will benefit from reduced pressure on certain securities, but the 4% drawdown in the S&P 500 could worsen.
Recent events in the Middle East have caught investors flat-footed over the past weekend and as I write this weekend is off to a rocky start. After an Iranian strike last weekend , Israel is expected to retaliate and seems to be making good on that promise . Passions are running high, which may translate into volatility in the stock market. If the situation escalates, the S&P500 ( SPY ) is likely in the middle of a correction that has not run its course....
Be Greedy When Others Are Fearful, Even If They Are Fearful For A Good Reason