Classic Fear and Greed
Investors around the world, in preceding years, had enjoyed above-historical average returns on both asset classes, continued reaching for ever higher gains, and the financial services industry created a variety of complicated products to meet this demand. They demanded high returns without regard to risk. How many of you remember the 20% years in the mid 1990s.. It became expected/demanded to continue..
Regulators and investors alike showed a growing complacency toward risk. And these factors blended together into a dangerous cocktail of underlying conditions that were ripe for instability. This is why we are where we are at this point, except for the fact instead of Greed.. we have Fear…
There are enormous challenge facing federal officials charged with finding solutions and much pain to come… but with this we must remember there will be tremendous oppurtunities…in stocks.. distressed debt..real estate…With that said..we must be careful and not catch the proverbial falling knife…
I would like to hear ideas… on how to make money after the carnage stops…
What do you think?
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