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Wednesday, July 24 | ||||
Buy More, Buy More Now! *
(CBOE Volatility Index & Dow Jones Industrial Average -- 60 Minute Chart)
Looks like I jumped the gun a bit by acting on the VIX > 40 schtick. The fear out there is palpable, but you can't game animal spirits... timing the market is for fools. Smart people continue to dollar-cost average into their index funds just as they have in the past, happily leaving the bottom picking to the dummies and the kooks. Of course the biggest kooks are the ones calling for Dow 5000. I have three words for those freaks: get a grip. Spend less time doing your Idiot Wave counts and fanning your Gann, and try learning how to read a cash flow statement instead. "Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic. Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits - a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities." -- J.M. Keynes * Remember the classic Lucas film, THX-1138? If you don't, this (128KB .wav) may jog your memory. |
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