Remember Crisis is the secret code word for Opportunity:
Look at this chart carefully; most will see disaster every time the Dow Jones pullback strongly. The would falsely classify this is a the end of the world but in reality is was nothing but a buying opportunity. When Fiat ends and nobody knows when that day will occur, we might have to change our mantra. Until that time, extremely strong corrections have to be viewed as buying opportunities.
This chart dates back to 1990. What do you see? Well, we will tell you what we see? There is no such thing as a crash? A market crash is a matter of perspective, and the masses always examine the situation with fear as their guide and stupidity as their master. It is a crash only if one is stupid enough to wait until the top to commit all one’s funds which the masses are famous for doing and if one is equally stupid enough not trade without any stops in place and then close the entire position at or close to the bottom. If you were playing the trend all the way up, then it’s a correction to a pullback because hopefully, you were prudent enough to continuously take some money of the table along the way up. All corrections are should be viewed as bullish developments; the stronger the deviation from the mean the better the buying opportunity, illustrated by the green boxes.