Fear is a parasitic emotion; the only good parasite is a dead parasite. So shoot to kill when it comes to fear
-Sol Palha
Fear mongers Function is to Stampede The Crowd
We will keep this short and sweet. Fear mongers have one thing in common; they pretend to have your interests at heart, but all they are looking for is to find a way to milk you out of your hard-earned money. Fear has to be avoided under any circumstance when it comes to investing. It is a detestable emotion that just sucks you dry. It takes and gives nothing back in return. When the crowd panics, one should resist the urge to become one with fear and the crowd. We are not in the jungle and fear is a useless emotion when it comes to making money in the markets. Get rid of it or it will get rid of you. Fear is a parasitic emotion; the only good parasite is a dead parasite. So shoot to kill when it comes to fear
In 2011, from the high to low the Dow shed roughly 16.2% or 2,070 points. Now, depending on your entry point, this could have been a mild correction or crash. If you purchased right at the top, then the experience could have been crash-like for you. Just because you think it’s a crash does not necessarily signify that your perceptions, that are being overwhelmed by fear are correct.
All media outlets were busy flooding the waves with stories that extremely pessimistic in nature. Misery loves company and stupidity simply adore it. Consumer confidence was not strong, the U.S. credit rating was downgraded, manufacturing was slowing down, and the list goes on. The 3rd quarter ended and the 4th quarter began and all those bogeyman stories well proved to be just that.
Now take a look at this video it illustrates some famous individuals and some not so famous, however, they all share one common trait; the lack common sense and sound like they smoked a combo of crack and cocaine.
One more idiot, Stanley Druckenmiller, stating that the end of the world, however, he has been wrong over and over again.
Fear Mongers Help Astute Investors Spot Opportunity
In both videos, the guys have been wrong again and again. Listen to these jackasses at your peril. We live in a new era, where manipulation is the order of the day. The masses have been fooled into believing a new reality and no matter what the few learned one’s think, the altered reality is the one that takes precedence. It is the masses that drive the markets.
It is the change in the herd mentality that dictates what the market does. The reason most fail in this endeavour is that they do things backwards, they try to treat the market as a separate entity and try to find out what it is doing and then determine what the crowd will do. When in fact, what they should be doing is looking at the crowd and then using the information to determine how the market will react. It is the crowd that drives the market. A market soars to new highs or crashes to new lows because of the way the masses are interpreting the situation. How can you predict something if you are not looking at the source?
Human beings are the most illogical of all animals. Despite having the power of reason and logic, they are the only creatures on this planet that will go out of their way to make sure they are in harms way. When you understand the mass mindset, trying to time the markets takes on a whole new meaning. This is why at the Tactical Investor, we dedicate an inordinate amount of time to studying the herd; we want to know what they are doing, why they are doing and if the sentiment has reached a boiling point or not. This data can be coupled splendidly with technical analysis to render a clear image of what is going on in the markets
Other Stories of Interest:
Do Investors need to own Gold; The answer might surprise you (April 13)
Fiat Currency: silent but deadly weapons of Mass Destruction (April 12)
Data manipulation; The Fraudulent Economic Recovery (April 11)
The US an Oligarchy, not a democracy concludes Princeton Study (April 9)
