Quote:
Originally posted by hatebreed
Psychologically, you know a down turn has come to an end when EVERYBODY is saying the market will go down the drain.
Think about it.
Dow Jones is at 11.000. Everybody is invested and talking about how the Dow will rise through the roof.
Dow takes a hit to 9.000. Some people get out. Half of the bunch is thinking "Sure it will come back pretty soon".
Down goes to 8.000. "Everybody" gets out of stocks. People are painting horror scenarios. Market sentiment is at an all time low.
Moral: Only if there are ENOUGH pessimistic players around the market can start another longterm uptrend.
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I agree with that whole heartedly...but...I started nibbling in high dividends paying stocks