Negative sentiment will spread among people, turning every bullish buyer to pessimism seller, which in turn exacerbate the bearish market.
Positive sentiment will also spread among people, turning every people in the street become "investor", which further drive the market upward.
Both are temporary market anomaly. We need to be exceptionally emotional savvy to be able to spot both of these times and grab this arbitrage opportunities.
There is nothing more than 2 emotions that drive market sentiments.
ReplyDeleteKIASU (greed)
n
KIASI (fear)
People see you grab, they also grab.
People see you dump, they also dump.
It is human nature.
If you can understand how human works, you know how the market works.
http://www.chinjonway.blogspot.com/
Your blog is interesting. Why don't you keep writing?
ReplyDeleteYou have your view.
I recalled that I saw your name under CFA level 2 candidates during my CFA exam in 2010. I believe it was you.