Fear & greed
So the cycle continues, as it has played out many times over the last few centuries. People throw caution to the wind and give in to euphoria (FOMO) when prices are skyrocketing, then in a flash rush for the exit once it becomes clear that the growth rate is unsustainable and things have gotten out of hand.
The markets tend to take the stairway on the way up and the elevator on the way down, and in some cases, they take the window.
What really gets me though is how many people know in their hearts that the best time to invest is right after a crash, but when the time comes, they are too scared to pull the trigger.
Fear and greed are powerful emotions and they all too often get in the way of rational decision-making.
Yes, the market might go lower, but that's always a possibility. However, time in the market is better than timing the market, and long-term investors who don't get afraid and re-invest when things are sour are frequently the most handsomely rewarded.
Over time, financial assets have a tendency to rise while fiat money losses its value. That's not an accident, it's by design.
It's not even a secret. Policymakers are very transparent about their inflation targets, which are never below zero.
However, when inflation does get excessive, it's very bad for politicians and often ends up forced back down to a (needed) manageable level, causing short-term pain for the masses.
Sincerely, | 