The Critical Investing Workshop Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : The Critical Investing Workshop

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Poet who wrote (34842)	3/16/2001 4:10:06 PM
From: jambo-bwana	Read Replies (3) of 35685

Poet, regarding capitulation The idea that there has to be capitulation defined as one of those huge down days with massive volume is a bit of a myth. Sure it can occur that way but some of the longer bear markets are those where there is this continuous grind downwards, a relentless process which drives those who are long to a point of exasperation. In between there are rallies - sometimes sharp rallies - which cause people to believe that the end of the bear market has been seen and then the decline resumes. When the bear market finally comes to an end, people are disbelieving thinking that it is one of those false starts - except that finally it turns out to be the real thing. The best way to visualize it is by viewing the recent bull market in reverse. We had sharp sell-offs which were thought to be the end of the bull market but then it resumed its upward trend. When the end came most assumed that it was just another one of those sell-offs. The psychology of markets is fascinating. Have a good weekend.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next