Quote Originally Posted by Lemur View Post
Strike, never buy something when you see the crowd howling for it. If everybody is convinced that goose feather futures are the path to eternal riches, that's when you either sell or completely avoid goose feathers.

Simple rule of investing: When people are screaming that the end is near and we're all going to be living in moldy barrels under a bridge any minute, buy. Conversely, when you hear that we're in a new economic paradigm where X* is going to go up and up and never come down 'cause the rules have changed, sell.




* X = Any commodity, stock or substance which has become popular for no good reason. See housing bonds, gold, ARs, junk bonds and tulips for further reference.
If you hear on the likes of Bloomberg "It is different this time" then immediately go grab granpappys blunderbus from the attic and stock up on bean tins and if there telling you to sell then buy and hold your nerve.

The problem as I see it is for some reason Economists seem to think the economy is outside the laws of thermodynamics or summit.