Wandering in the blood.....

Blood, Blood, Blood.....

Wherever you go these days, you are submerged into a fresh bloody river flooding down! You are also bombarded by the headlines like " 美股狂杀千点爆了 专家曝"致命原因"警告". Scary, right? Yes, but I see more and more opps right now. Remember Warren Buffett's famous maxim?  "Be fearful when others are greedy and greedy when others are fearful". I'm just trying to do that🤗

While investors have been whipped into a frenzy about how devastating a half-point rate hike is going to be for stocks... cold hard facts paint a very different picture based on the historical data dated back to the 1950s. During this time, there have been 12 rate hike cycles, in which the S&P averaged an annualized return of 9%...

More importantly, only one of those cycles yielded a negative return.

Don't get me wrong. I'm not saying there is no risk of a recession. Not at all. I think the recession risk is quite high actually and we may be well on the way going into a bear market. Nevertheless, the market rarely follows the herd's opinion and dances with them in sync. Even if a recession or a bear market is coming, it takes time with volatility. There will be up and down along the way. When at an extreme end, a reversal in either direction can be very violent and powerful, even in a "rip you face off" fashion, just like what we saw on Wed. Right now, I'm betting on another explosive dead cat bounce in the very near future, probably within days.