Unique Opportunities In Recession Times
Take advantage of pessimism to invest in the next bull market
The market sentiment is one of those things that is always on the mind of investors because they know that historically the point of greatest investor danger is just after the moment of greatest euphoria. And vice versa, before the start of the best investment times, the pessimistic sentiment usually reaches its highest level.
Many people ask us daily in which part of the cycle we are. Some bet on the stage of "Denial", others on "Anger", and others on "Depression". Today we will give you the answer.
If there is a time when it is worth being 100% invested, it is during the phase of Depression, as it is in those moments when the investor can benefit greatly from the rally.
However, it always happens the other way around. The investor reaches this final stage with nothing of cash. The market also has nothing of cash and cannot invest. Commercial banks do not have this problem as central banks return to printing money and quickly return to pre-contraction levels and their executives return to having their millionaire bonuses.
This 2023 is the most announced recession in history. We have never before been in levels of pessimism similar to those we find today.
Extreme market situations give rise to extreme opportunities, which the average investor never benefits from.