Warren Buffett talks about the contrarian approach to investing: Being fearful when others are greedy, and being greedy when others are fearful. When the price of stocks fall, it’s precisely the wrong time to panic, as explained in this succinct post by PKaurK.
Many people would think this is a strange comment to make. Why would anyone hope for the stock market to fall? Surely we’d all be better off if the stock market was rising? I can see why you would think this considering the way the media report on the stock market suggests anything other than a rising market is a disaster. But not everyone should hope for a rising stock market.
Bull and bear markets are normal for any type of market, including the stock market. We can’t avoid this, we all have to go through and experience these cycles. Would you rather buy stocks and shares at their peak or at their low? This is not a trick question, of course you would want to buy them at their low and sell as high as possible.
Don’t be afraid of a bear market
So as a millennial investing for…
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