“Investing is similar to fishing in many ways. When the economic weather conditions are good, investors willingly pay higher prices for securities and will accept lower expected returns (i.e. a more modest catch). When the economic weather conditions are bad and securities prices are low, many investors stand passively on the banks of the capital market stream waiting for better conditions to emerge. Unfortunately, ‘waiting it out’ is often when you forego the best opportunities to haul in low-priced securities with their associated higher expected returns.” Chas Boinske, Independent Thought
Once upon a time, in a land not so far away, there was an investor named Soldyourstocks, who had lived in the Kingdom of Cash for eight long years now, ever since the Game of Loans in 2008 had turned investor sentiment into a dark winter of discontent.