Saturday, December 19, 2009

When there is blood in the streets, You buy property

There is a popular saying “ When there is blood in the Streets, You buy Property. In the Hollywood Movie ‘The Inside Man’ the sentence was used frequently to describe situation of Character in that Movie making money during world war.


The saying would surely fit for the Investments decisions. Whenever there is a decline in the price of the assets whether it is Stocks or Bullion or Real Estate, they are bound to come up from low levels. But it may not be immediately but surely it will rebound atleast after some time.


But the emotional setup of all Investors at that time would be biased towards panic. They will be following the herds. Herd Mentality would set in which would surely ensure the Investors not to take rational decisions.


But the history shows whenever there is panic in any Market that is the best buying opportunity and it is mostly missed by most Investors. Investment decisions should be taken in a particular asset when others are selling. This is called the contrarian thinking.


The best Investment chances came when everybody was in Panic about the particular Market. In future, we may see a panic situation in the any market. We should see that an Investment opportunity, instead of joining the herd.






The contrarian thinking says ‘you buy property when others are selling’.


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