Mob Rules
From a reader:
Hello Michael. I am a regular reader of your blog and website, and owe it to you for correcting all my psychology towards the market. Trend following taught me to look at things from a rational and objective way. And for that I am thankful. I thought you may find this interesting, I am a resident of Karachi, Pakistan. The Stock exchange has lost more than 27% in the past month. Instead of liquidating their positions, what do investors do? They actually organized a protest against an “oppressive” government and demand that the government fix the situation! Unbelievable. Surely no-one thought of calling the government oppressive when the market had gone nowhere but up for the past 8 years. Now they are in trouble and want the government to bail them out. And here’s the silly part. They could have set stop losses, or better still chosen to go short, but it’s as though the average investor does not wish to think straight and ends up wanting a free lunch instead! I’m glad I can now see through it. And I’d like to thank you for doing an excellent job. Here’s the link to the news clipping. Have a nice day, Regards.
I could see US investors doing something every similar! Wait, isn’t that what they have been doing with real estate and the FED over here?
