Do you like the stable market?


In natural science, the balance environment always see something like this:
Electron = Proton, or what we say, Positive is equal to Negative.
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Similar in stock market, if nothing happen:
Buyer = Seller
In this case, technically the stock price will remain the same all the time. (this is boring ya, just imagine if a stock just remain the same price today, tomorrow or next year) Once a while, some kind of news will spark the imbalance, like what we faced in 2008, the financial crisis which caused few big banks to meltdown, making seller more than buyer. Sometimes, the seller became panic and want to sell stock like no tomorrow and dump the share price at what even price.
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Recently, market seem to encounter the similar imbalance again. It's full of negative news every where. It remind me of one famous quote:
It's a mistake to sell something worth 1 dollars for 50 cents with the hope to buy it back at 30 cents.
It's also a mistake if you refuse to buy something worth 1 dollars which now sell at 50 cents because you believe that it will drop further to 30 cents.
It's definitely a mistake if you buy something at 1 dollars if it only worth 50 cents with the hope to sell it above 1 dollars.
It's time for value investor to act and use their wisdom again.

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