It’s a scary four letter word. One that can make sane people do crazy things. One that can drop a market from All Time Highs down -15% in five days (as of the time of this blog). Four months of market expansion came crashing down in five days because of fear.
In all fairness, the coronavirus is definitely something to be afraid of. But a market drop like this isn’t something simply out of fear for a virus. It’s a trigger that piled on tightly wound markets with little support along the way. Over the last 20 weeks we’ve seen prices soar at an unbelievable rate without little stopping them to gather support. And on days like today, prices are currently soaring 400 points and back down in a matter of minutes. Pure madness.
When people have fear, they panic and do things they might not do if they were to sit a minute and take a breath. Today is panic mode; one minute sellers are trying to get out of their positions, the next to buy – afraid they’re missing out on rally profits. Calm the F down, people.