Buy Fear and Sell Greed

No matter the market, the paradox of anxiety and gluttony creates pricing mechanisms for quality-driven value investors

Photo by Chenyu Guan on Unsplash

Summary:

• Whether in a bull, bear, or range-bound market, buy on fear and sell on greed, assuming the share price is attractive (fear) or above your cost basis (greed).

• However, trying to predict market movements is a fool’s game.

• Buying is exhilarating, but selling is exacerbating. Thus, sell only to take profits instead of …