As always, one realizes an opportunity when its already recorded in history. By that time its toooooo lateee. Don’t make that happen this time!!
The following statement from GMO’s December 2010 letter very much fits in context of current situation.
“Over this time, we have witnessed some quite remarkable, and quite appalling, things – the deaths of empires, the births of nations, waves of globalization, periods of deregulation, periods of re-regulation, World Wars, revolutions, plagues, and huge technological and medical advances – and yet one thing has remained true throughout history: none of these events mattered from the perspective of value!”
With stocks having roughly doubled off the March 2009 low, investors were becoming greedy, but suddenly fear seems to grip the markets again. Please note that corrections are healthy for markets to move ahead.
What I feel and what we have witnessed in past is that nothing can go up for every. Eg: Like the real estate prices in US (most recent). It is healthy and was inevitable that the markets were going to correct, after such a long run, but lacked negative signal(s).- we all were waiting for one, ain’t it!! Investors now have a reason to book profits and let the market correct.
If there are no further shocks, I personally believe that in 5 to 7 months from now, you’ll turn around and find that this was a great opportunity to buy. I’d be surprised if the market is not at least 10% higher from where it is now.
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