Investor fear is now palpable. Good. We can make use of this.
Earlier in the year I posted this note about the emotions of a hypothetical trader (investor?) during the 2007-2009 crash. See if any of it resonates with you. Granted, you are older and wiser now — having been through two major market crashes in the past 15 years.
Still, you may be a little twitchy. I suspect your nerves will settle down after the market (S&P500) comes back to re-test the previous peak over the next month. This experience will likely help cement a buy the dips view and build a dangerously misplaced confidence.
Full disclosure, I’m now long the S&P500 —but this will only be true for a few weeks. This is as long and loud as I get.
We are now in the 9th Greedometer sequence. Every time the sequence resembled what it has done over the past five months, new central banker actions had to be announced to stop a crash. No two sequences have been the same, but the commonalities are instructive. FYI: the highest combined Greedometer and mini-Greedometer readings in the past 15 years (now closer to 16 years of data actually) were seen at the outset of this sequence.