June 30, 2022
By Scott Wohlers
These are the two main emotional drivers of investor motivation. For the past seven months, fear has been dominant. Certainly, there are real world fundamentals driving this, a catalog of concerns. No need to list all of them, however, inflation and the war in the Ukraine are at the top of the list. Add higher interest rates and the prospect of recession to the mix, and it is easy to see how optimism and greed got pushed to the background.
But remember, fear comes and goes, greed–or more accurately–the desire to make money, is always with us. It is a fundamental part of why people are investors. The greed motivation will always return. For some, it never leaves. When others are selling, a few are buying. They are looking beyond the obvious concerns of the moment and see opportunity.
Some of the best returns any investor may book start with gutsy purchases during the darkest of times. It’s Barron Rothschild saying to buy when there is “blood in the streets.” J.P. Morgan said that these kind of times are when “stocks return to their rightful owners.” Be a rightful owner. Stay steady my friends.
The Lonely Bull
