Another Sign We Are Near The Market Bottom

“I am so buried right now with the lower prices compared to what I paid,” he said. “But if I can get what I think is a reasonable amount, I’m going to sell out.”

Investors flee to stock market’s sidelines, no return in sight - MarketWatch.

I am always happy to see articles like the one above from MarketWatch. I remember similar sentiments in 1987 and 2002.

Here are a couple of more quotes from the article from professor Terrence Odean:

“There was a sharp drop for a couple of days in 1987, but this is very different,”

“It’s not unreasonable for people to want lower exposure and risk in this environment,” said Odean.

It is a source of continuing amazement how investors love stocks when they are high and cannot bring themselves to hold them when prices are at their lows. It appears that this happens to investors at all levels. The emotional pain of seeing one’s investments lose value is just more than many can handle.

And finally when the investor quoted at the beginning of this article was asked if he would come back into the stock market:

“There’d have to be a dating period. I’d wait and see what happened three or four years down the road.”

Sounds like timing for the next market peak!

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