I was at an investment seminar yesterday and an off the cuff remark stuck with me.
“Different opinions make a market”
Obvious, simple, accurate, yet something we all forget. It provides some comfort, when even at the same seminar there are conflicting views which imply taking rather different investment approaches. This is something that we all need to remember.
The masses will always seek out the most popular approach (herd mentality); the shrewd invariably take the opposite position or more accurately sell to these buyers or buy from these sellers. Buyers and Sellers make a market, not one or the other but both.
This is precisely why a diversified portfolio with a long-term perspective is vital.
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