Wednesday, January 23, 2008
Fanning the Flames of Panic
Here are images of the past two days' front pages of The New York Times. I last commented on this subject here.
When a stock market drop is a front page headline in the Times three times in four consecutive weekdays you can be confident that the worst is over. In my 40 years of experience the principal lesson I have learned is that the best opportunities occur when people around you seem to be losing their heads and when the temptation to flee the market is strongest. I believe this market is scraping bottom and will soon embark on an extended rally above the 1600 level.
Today's front page (top image) did bring me a chuckle. The heading "Worries that the Good Times were a Mirage" must have been written by a newbie at the Times. Any regular NYT reader knows that that there were never any "good times" since George Bush was elected president in 2000.