Dan Perkins

Investor Capitulation: What to Watch Now

Something important to keep in mind: Your perspective is one separateness from all those capitulators out there somewhere.

When you get true capitulation, you may very well have been sucked into the vortex as well. Capitulation comes when you and everyone else are truly convinced that all the trouble has passed about three times in a row, only to get pummeled again: Dow 5K, then Dow 4K, then Dow 3K.

On the third time, you and everyone truly believe the world is coming unglued, just say, "to hell with it, I give up - that's capitulation.

The whole thing is rather paradoxical and very difficult to remain separated from! It is not as though you will be sitting back and watching all the foolish capitulators!

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