irondoor91

Opportunity in Emerging Markets Amidst This Panic

Frear is a natural reaction, and it has a positive intention; to protect yourself from danger. It originated thousands of years ago when man saw others of his species running in panic. He didn't stand around waiting to see if it really was a saber-tooth tiger. He just ran with the herd that had alerted him to potential danger as he had been trained to do.

On the other hand, when man is hunting for game he applies patience, cunning, stealth and a small group with killing tools. He knows better than to charge in the direction of his prey. As he becomes better equipped to kill, many gain complacency and the highly skilled begin to supply others with meat as they become dependent on his hand-outs.

But those who became complacent and dependent lacked survival skills. They were out of shape and couldn't escape.

Sound familiar? It should, because we are seeing it play out today in our citizens who are sitting on their portfolios and 401-k's like deer in the headlights. "It'll come back" is the refrain. Don't panic. Diversify. etc.

By the time this decline accelerates down past the 8500 level, true panic and the herding instinct will set in. But it will be too late for many. They left too much of the decision making up to others and had let any skill in it that they should have acquired before investing wither away. All they have left now is either indecision or panic.