In the short term markets react to emotion, not logic
Fear and Greed are more powerful in the short-term than thorough analysis
This explains, crashes, panics and other seemingly irrational market events
As such, there are times when it pays to take a longer-term rational view and not focus on what the market is doing short-term
Example: During the internetbubbleboom, companies with no revenue or earnings were screaming higher while solid companies with strong cashflow and dividends were going down in value (everyone wanted to be invested in Dot Coms)
Warnings and Disclaimers
The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.