Anyone familiar with the work of Dan Kahneman will understand what is happening in the minds and decisions of those currently hypnotized by 24/7 streaming news. The bamboozled are dumping buckets of cash overboard as fear has taken the place of rationality. In 1.5 months time many of these people will wake up as if from a fever dream as they behold very real losses in their retirement accounts. We have a lollapalooza of errors in the markets.
Market makers don't cash-out panicked masses at the top. The market goes into temporary safe-mode--it descends like an airliner to the nearest airport and allows amateurs to go on their way. The airliner then gets back to 35K feet and the world goes on.
The opportunity to be greedy while the irrational panic is evaporating. Black swans always usher in silver linings.
This crisis WILL end, investors must operate in the future. The model is Wuhan--the writing is on the wall for those with eyes to see.
Incredible bargains just sitting out there.
Of course it will happen, not pushing it through will cost many politicians their careers--not an outcome thise who hold power will accept.
When this inevitable, predictable event is announced, their will be a tsunami of retail orders that will drive the market up further--will cover a lot of professional positions.
A word of caution: If Covid takes a bad turn in the US-- we cannot rule that out completely-- the entirety of the current selloff is wave one of three.
Every decision in the coming days will be seen correctly only with hindsight.
Be healthy, everyone, and God bless!