Investor Psychology 101

[JohnDoe700M]

http://oi56.tinypic.com/288p2l0.jpg

[Myth465]

LOL looks about right for me at least minus the sell at the bottom.

[biaggio]

I feel like I am at #6 today

[Santayana]

:D  Great chart!

[JohnDoe700M]

Fortunately, one of the most valuable lessons of my career came in the early 1970s, when

I learned about the three stages of a bull market:

 

• the first, when a few forward-looking people begin to believe things will get better,

• the second, when most investors realize improvement is actually underway, and

• the third, when everyone’s sure things will get better forever.

 

And:

 

To aid in your consideration of the future, I’ve formulated the converse of the above, the

three stages of a bear market:

• the first, when just a few prudent investors recognize that, despite the prevailing

bullishness, things won’t always be rosy,

• the second, when most investors recognize things are deteriorating, and

• the third, when everyone’s convinced things can only get worse.

 

Howard Marks, The Tide Goes Out (March 18, 2008)

[Icarus]

Haha funny chart  ;D

 

Howard Marks is a good read.  I think we're at the second stage right now.