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Monday, April 8 | ||||
Maximum Pessimism
(Click for Full Sized Chart)
I read that John Templeton bought airline stocks following the terrorist attacks last year. Obviously the 88-year-old investor is still sharp as a tack, and continues to employ the contrarian methods that made him rich. The Volatility Index (VIX) helps me identify the times of "maximum pessimism" that Sir John waits for... these are precisely the times you want buy stocks, not sell them. "That's why successful investing is so difficult... To buy when others are despondently selling and to sell when others are avidly buying requires the greatest fortitude and pays the greatest reward." -- John Marks Templeton |
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