- Investors are terrified. Such is what you would assume from recent mainstream media headlines and CNBC’s continuous run of “Markets In Turmoil.”.
- The massive Federal Reserve interventions, bailouts, and zero rates provided a perverse incentive to take on extreme forms of risk, from speculative IPOs to SPACs to Cryptocurrencies.
- As noted, there is a price where “everyone sells.” The “emotional” strain eventually erodes investor confidence in their previous decisions. This is crucial because there is generally no investment strategy or discipline.
For further details see:
Investors Are Terrified, So Why Aren't They Selling?