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2008 > October

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Investing: fear and greed ::

One of my friends just posted a Facebook update suggesting that everyone buy stock now. I idly mused about buying Apple today. If I’d pulled the trigger then, I’d have lost 3% by the end of the day.

My question to those who think we’ve reached the bottom is this: Do you believe that right now the level of fear is more irrational than the level of greed a year ago? Right now I feel that fear is a very rational response and that the levels of euphoria (greed) over the past several years have been an irrational bubble.

I just looked at Google Finance and there’s a front-page story, GM, Ford Shares Fall on Cash Concerns. Their stocks aren’t plunging because of irrational fear. Their stocks are going down the drain because there are serious questions about their ability to survive the recession.

<< Earth From Above

2008 > October

What's in your junk mail? >>

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