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A sense of panic has taken hold of the market this week.
This past Monday, we saw algorithms drive the market lower; most of the downdraft was due to computers and deleveraging. That's why the move felt so aggressive and so quick.
Tuesday followed with the human trader reaction, as more fear creeped in around the edges. The likelihood of a major coronavirus outbreak in the United States is increasing, and as such, related panic selling will not cease anytime soon.
The only question now is how bad the disruption will be, but one thing I can assure you of is that panic selling in moments like this has proven time and again to be the wrong strategy.
You have to remember how the game is played, no matter the severity of the event impacting markets, and that has been and always will be buy low and sell high.
Right now, we're getting our "buy low" moment: a chance to continue to outperform the market over time.
Everyone will debate on when to get in, but it's nearly impossible to time it perfectly. Instead, you should think about how to get in.
That mentality is the key to profits – and here's exactly what you can do to help you win every time…
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.
I've never done, or think of anything like this. I'm just thinking of buying stocks. The buy low over a period of time seems workable.