The above line was derived from the famous quote by John D. Rockefeller (or some say Nathan M. Rothschild) which goes “The way to make money is to buy when blood is running in the streets”.
The colour of blood is red, which is also the same colour to denote a down market or securities price. The phrase “blood is running in the streets” could metaphorically mean the entire market is red, and/or a lot of investors/traders had “bled” their capital, incurring huge losses.
It is at this time when market panic sets in and equities are at a depressed price, oversold by investors to move their capital to other asset classes and safe havens. It is also at this time that bargains can be sought. Being in the same asset class, majority of equities will suffer the “drag-down” effect, including those that are fundamentally sound. This covers the “the ...
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