Headlines are too panicky

There is a cliche and that is that markets do not crash when everybody is fearful.

Glossing over a few headlines today, we have:

  • ‘Global equities are likely to be under pressure in coming months’: Citi
  • Households that made money in the pandemic should prepare for some financial pain
  • Eyeing higher inflation and volatility, investors turn more selective: fund managers

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    Almost nobody out there is saying “buy stocks”.

    I’m not saying GME is going to a thousand dollars, but I wouldn’t bet my life on it NOT happening.

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    This time is different?

    I use the Fear/Greed index and AAII index – when the retail investor is bullish I am cautious and vice versa.

    I had never heard of these. Interesting contrarian indicators. Thanks for the tip!

    This contrarian stuff is pretty tricky. E.g. the housing market – people buying houses unseen, people saying housing prices ‘always go up’, and so on (and this was before the pandemic!). I’ve been waiting for a collapse for what? Ten years lol.

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