Greed and fear are two opposing emotional forces that profoundly affect markets.

 

              Greed drives prices to levels of over-valuation – and fear to levels of under-valuation.

 

              Psychologists will tell you that fear is the more powerful of the two forces – which explains why Fear of Missing Out (FOMO) often leads to price bubbles.

 

             Do you remember the “buy now or be priced out forever” battle-cry that was shouted from the mountain tops by the National Association of Realtors back in 2005-2006 – which happened to be right before housing prices collapsed?

 

               How did that fear-driven message work out?

 

                                                   How to Get Rich: 

                                   Guidance from Warren Buffett

 

               “If you want to be rich,” says Warren Buffett, he has a rule that takes advantage of those prevailing moods:

 

                                       “Be fearful when others are greedy,

                                  and be greedy when others are fearful.”

 

               Warren Buffett claims he is not a market timer – but the above quote says otherwise.  

 

              You buy properties when they are undervalued and hold them until they are overvalued.  Most people, however, act emotionally and do just the opposite – to their great detriment.

 

              Buying low and selling high is the Golden Rule of investing.  It’s the strategy that produces the best long-term results.  

 

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                                          October 23, 2021 Seminar:

 

                 “Is Inflation Knocking on the Door?  Or Is Deflation?”