Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.
Sentiment: NEGATIVE
Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed.
The financial markets generally are unpredictable. So that one has to have different scenarios... The idea that you can actually predict what's going to happen contradicts my way of looking at the market.
Markets are frequently ahead of, and often out of sync with, the economy.
Fear tends to manifest itself much more quickly than greed, so volatile markets tend to be on the downside. In up markets, volatility tends to gradually decline.
Fortune is like the market, where, many times, if you can stay a little, the price will fall.
The reality is, risk is variable. Those in the financial world know it.
More and more investors may be coming into markets everywhere but that doesn't mean that the markets are really getting more and more efficient, even in the United States. It does mean that there is more access for savvy investors who watch the money flows.
I put forward a pretty general theory that financial markets are intrinsically unstable. That we really have a false picture when we think about markets tending towards equilibrium.
Successful investing is anticipating the anticipations of others.
The markets don't like instability and they don't like uncertainty.