Dividends Anonymous

Fear and Greed: Premise for Capitulation and Overreaction

What's so wrong with fear & greed? It creates volatility, which creates mispricings and as a value investor I look forward to those opportunities.

Emotions throw both good & bad stocks in different directions at times and creates attractive entry positions for a long-term investor. It's much easier for a retail investor to move within the market than managers of large professional equity.

We haven't seen volatility in quite some time and when investors haven't gotten used to something they generally fear it immediately and over-react.

Paulson and Bernanke: A Conspiracy of Dunces

Read Bernanke's 1983 work titled, "Nonmonetary Effects on the Financial Crisis in the Propagation of the Great Depression" and get back to me on how much of a dunce you think he is.

What looks good on paper doesn't always work well in the real world, but he's done a much better job than anyone else put into this situation. It's all about the supply of money for credit - bottom line, and he gets that. Politically though his hands are tied and this is an arena he was likely not well prepared for.