A really good article. I am so fearful of the market turning down 10%. But the market is showing high greed index.
Retail Investors Aren't Scared Of The Stock Market. That Will Only Make The Selloff Worse
Regular investors have been 'buying the dip' aggressively. Remember: Be fearful when others are greedy.Individual investors' eagerness to "buy the dip" suggests that the stock market is close to a significant top.This bodes ill for the stock market because widespread "buying the dip" behavior among retail investors is a hallmark of market tops, just as reluctance to buy the dip typically occurs near market bottoms.According to contrarian analysts, a market bottom will be close when retail investors engage in just the opposite behavior than "buying the dip." To put that another way, a bottom will be imminent when investors eagerly use the occasion of every rise in the market to reduce their stock exposure.Such fearful investor behavior isn't apparent nowadays. It becomes even more remote with each successive dip in which investors are rewarded for buying. Their
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