Everyone wants to know what happens next. That’s the nature of market crashes. When will it end? Was that the bottom? What if it falls further?
The questions are asked a hundred different ways and the only good answer is: “I don’t know.” But that’s not what you’ll hear.
Instead, everyone also has an opinion. Many will go out of their way to express it. The trouble starts when people listen and act on it.
Warren Buffett dealt with this situation in 1966. The Dow had a rough six months to start the year. It declined from 969.26 to 870.10. That’s a loss of 8.7% after dividends, a tame decline compared to 2020. A few of his partners felt obligated to tell him what would happen next. This was his response: Continue Reading…