Crisis investing: stock market crashes represent opportunity & not disaster

stock market crashes represent opportunity & not disaster

Our overall motto as long as the trend is up is unchanged; jump for joy when there is blood in the streets, and panic when the crowd is Euphoric.  This one simple picture will explain why all strong corrections or crashes or whatever the naysayers would have you believe are nothing but buying opportunities. That is really what crisis investing is all about, seeing opportunity where others see disaster.
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.

Crisis investing: stock market crashes represent opportunity & not disaster

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. 

 Look at the chart above; who won the from 1990-2016, the bears or the bulls?.  This chart is a clear illustration that the Doctors of Doom only make their money by selling the masses crap they would never dream of using.

Other stories of interest:

Central banks declare war on Citizens (Feb 23)

India overtaking China just a pipe dream  (Feb 22)

Top 10 investment resources for Novice Investors  (Feb 20)

Central bankers will never lose war on Gold (Feb 18)

War On Wealth: Central Target the Masses (Feb 18)