Fear ain't all its cracked up to be

With the recent machinations of the market I am reminded of the Dutch Tulip bulb bubble of 1637. Human emotions haven't changed much since then nor have the words we say to ourselves to justify our actions in light of our unconscious emotional drivers.

From what I have seen, people react in 3 main ways;

1) they panic early and sell and take their losses and lament ever having bought the Wall Street story
2) they freeze with fear and are unable to take any constructive action and ride the ship all the way down
3) or they go completly insane with greed buying more and more while the prices plummet pretending to be the next great value investor (a la Buffet)

It reminds me of people in Vegas who get sucked into believing that there is a progressive statistical probability to the rolling of the dice driving them towards virtually guaranteed success. Of course as any student of statistics knows each roll of the dice is a completly random and isolated event. And so is the price of stock when emotions take control. Stocks have no intrinsic value. Value is established in a bid/ask scenario. There is not a shread of proof that a stock is more valuable to own at 50% of pre sell off prices but it sure sucks a lot of people in who want to "double down" in hopes of scoring big.

Wall Street is a big Casino under the guise of an auction house, always has been, always will be.

When YOU ARE READY to get a market Based Return coupled with a No loss guarantee call the "Safe Money Guy" Tom Newell. Come in for 1 hr and leave financially safe - Not sorry.

Sincerely,
Tom Newell
Newell Financial Services Group
404-915-3990