I always pay attention to the seasoned investors in difficult markets. By seasoned, I am referring to those over 80 years old. Why? They have a lot of reps in up and down markets. While markets don't always move the same in each up and down cycle, experience counts. Keep this thought firmly in mind. History does not repeat itself, but it rhymes. To have 60 plus years in the markets, requires a lot of learning and adjusting. Listen closely to those folks!
I was watching Bloomberg today and they interviewed a seasoned investor, Gary Shilling. He believes that we have 20 to 25% more downside to experience. We have yet to shake those dip buyers and they are still hanging tough. I couldn’t agree more.
When interest in buying the dip recedes, the blood will flow in the streets as most swear off the markets never to return to equities markets. Sellers will dominate the markets and no one will want to own stocks. Their opinions will be to swear off EVER investing in the market again. That will be the time to buy. It will be the period where real performance will shine through, but only for those who own quality stocks, stay mentally grounded,and have kept significant cash available.
So when you hear a seasoned investor speak, listen closely. I most certainly do! They know what they are talking about. Ignore them at your own risk.
Be smart, be well-read, be aware and be successful.
