Billionaire investor Warren Buffett is buying US stocks, he wrote in an opinion column in the New York Times. "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."If you needed proof that Wall Street is ruled by emotion, look no further than Warren Buffett, one of the most successful and famous investors of our times. His statements should put all of us on notice - panics create opportunities for those with cash. Also, fear and greed drive decisions about stock "price" no necessarily sound financial practices of the companies they represent.
So read his words, and understand their meaning. If you invest in the stock market, you are investing in something that is ruled by emotion, not technology, no statistics, not accounting. You are betting that there will be someone to purchase that stock at a future time, at a higher price -- nothing more. I like the stock market and believe everyone should have some level of investment there -- I also believe most people don't have the guts to stick to their plan when things start going a south.
My advice -- stick to your original plan - don't panic, don't worry -- everything will work out.
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