FNArena’s Weekly Insights – March 14 2022

In this week’s Weekly Insights:

-Double Your Protection
-Conviction Calls & (More) Post-Reporting Season Notes

By Rudi Filapek-Vandyck, Editor FNArena

Double Your Protection

It happened last week.

“How come so many investors got wiped out during the GFC?”, said one trader. “I don’t understand. Surely everyone has a pain threshold. Surely at some point every investor goes ‘enough is enough’?”

Yeah. If only it were that simple. If only he was there, he wouldn’t be asking the question.

The problem, I responded, is that bear markets are a process. Despite assurances from some chartists and the usual Cassandras, nobody really knew what exactly was the problem, how long it would take and how bad things were to turn out.

It’s only human to start tapping into the internal optimist once that first -10%-20% is on the boards. After all, history shows market corrections of -10% are not that unusual, and even -15% or -20% is simply par for the course. It happens. And as everyone who has been in the market long enough knows, such pullbacks are healthy; they create buying opportunities.

Click to read the Full Report