| The two main psychological drivers in the stock market are fear and greed. At their extremes, both of these factors instill in investors a lack of clarity and investment irrationality. Presently, the security markets are bombarded with excessive negativity, increasing share price volatility and spreading investor anxiety. Basic fundamental analysis such as income and balance sheet inspection have given way to panicky momentum trading and a "Chicken Little" investment mentality. In our view, the present fearful environment will provide for excellent stock-picking opportunities in the context of a 12-18 month holding period. |
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