As equity markets around the world reach a new high, investors need to remember a few things about the bull markets. Here are some comments made by famous investors who have seen many bull and bear markets in their careers.<\/p>\n
\u201cBull markets ignore bad news, and any good news is a reason for a further rally.\u201d Michael Platt<\/p>\n
\u201cGresham\u2019s Law says that the bad money [paper] drives the good money [specie] out of circulation; this accurately describes human behaviour when people are confronted with a cost-free choice. I now believe this accurately describes people\u2019s choice of investment philosophies, especially late in a bull market, when the sloppy analysis drives out the disciplined assessment, and when the grab for return overwhelms the desire for capital preservation.\u201d Seth Klarman<\/p>\n
\u201cThe longer the bull market lasts the more severely investors will be affected with amnesia; after five years or so, many people no longer believe that bear markets are possible.\u201d Benjamin Graham
\n\u201cIn investor behaviour, particularly during the last stages of a great bull market, perception of risk and actual risk are at opposite ends of the spectrum.\u201d Leon Levy<\/p>\n
“People tend to forget about the importance of the price they pay as the experience of a bull market just sort of dulls the senses generally.” Charlie Munger<\/p>\n
\u201cOnce a bull market gets underway, and once you reach the point where everybody has made money no matter what system he or she followed, a crowd is attracted into the game that is responding not to interest rates and profits but simply to the fact that it seems a mistake to be out of stocks. In effect, these people superimpose an I-can’t-miss-the-party factor on top of the fundamental factors that drive the market. Like Pavlov’s dog, these \u2018investors\u2019 learn that when the bell rings – in this case, the one that opens the New York Stock Exchange at 9:30 a.m. – they get fed. Through this daily reinforcement, they become convinced that there is a God and that he wants them to get rich.\u201d Warren Buffett<\/p>\n
“The further you get away from a bear market, the greater the number of people who have convinced themselves they can handle the downside \u2013 until the next time, of course. In the interim, if the indices are performing well, then you can bet that many investors \u2013 individuals and professionals, alike \u2013 are going to feel pressure to do whatever they can to ride the bull.” Steven Romick<\/p>\n
\u201cNever confuse genius with luck and a bull market.\u201d John Bogle<\/p>\n
“In a bull market, it is advisable to restrain one’s greed. There is an old wall street saying, \u2018The bulls make money, the bears make money. But what happens to the pigs?\u2019. You can’t make 101 per cent. You shouldn’t even strive to make 100 per cent. Your goal should be 66.6% of a big move. Get out and then reinvest in something that has been newly studied.” Roy Neuberger<\/p>\n
\u201cIt\u2019s just the nature of a rip-roaring bull market. Fundamentals might be good for the first third or first 50 or 60 per cent of a move, but the last third of a great bull market is typically a blow-off, where the mania runs wild and prices go parabolic.\u201d Paul Tudor Jones<\/p>\n
“Common stocks should be purchased when their prices are low, not after they have risen to high levels during an upward bull-market spiral. Buy when everyone else is selling and hold on until everyone else is buying \u2014 this is more than just a catchy slogan. It is the very essence of a successful investment.” J Paul Getty<\/p>\n
“Very early in my career, a veteran investor told me about the three stages of a bull market. Now I’ll share them with you. The first, when a few forward-looking people begin to believe things will get better. The second, when most investors realize improvement is actually taking place. The third, when everyone concludes things will get better forever. Why would anyone waste time trying for a better description? This one says it all. It’s essential that we grasp its significance.” Howard Marks<\/p>\n
Source: http:\/\/mastersinvest.com\/bullmarketquotes<\/p>\n","protected":false},"excerpt":{"rendered":"
As equity markets around the world reach a new high, investors need to remember a few things about the bull markets. Here are some comments made by famous investors who have seen many bull and bear markets in their careers. \u201cBull markets ignore bad news, and any good news is a reason for a further […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[74],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1570"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1570"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1570\/revisions"}],"predecessor-version":[{"id":1571,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1570\/revisions\/1571"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}