All it took was a few good sessions on Wall Street and some traders have started to declare that the bear market is over. I kid you not when it was only last week that the same people were warning that Armageddon was just around the corner. To call these people schizophrenic might be a bit harsh. But I can’t think of a better way to describe them.
Trouble is, they are traders rather than investors. Their decision to buy or sell is based on what others are doing. So, rather than to dignify them with a medical label such as schizophrenia, we should perhaps just call them lemmings. They are happiest and probably at their most comfortable when they do what others are doing.
However, real investors must learn to think differently. Benjamin Graham said that we are neither right nor wrong because the crowd agrees with us....