Stocks, business, real estate, technology…
We often refer to hot markets that are moving up in price as having “aggressive buyers”. Sometimes markets move the same way to the downside, with irrational exuberance. When the market is hot and hitting new highs, the theory is to sell, because it is likely to come back down, then you can buy again at a price lower than you sold, you hope.
Today, this week, we have exuberant selling! A market responding with excessive aggressive selling, based on news of a virus. If the selling crowd went by the numbers in the reality of the effects, they might not be so exuberant.
The selling is so hot, it is affecting other markets. At the moment I am writing this gold is selling off, speculation is the Fed will lower rates in the near future, some are considering cash becoming constrained, international travel and cargo are seen as waning, and fear is spreading faster than the virus.
This could be a great time to consider becoming an aggressive buyer. In fact, this is a great time to consider being an aggressive purchaser of business opportunities in general. Not from a frivolous point of view, but from a thoughtful one, seeking to close on opportunities you were already considering. The best time to buy could be in the very near future.
If the Fed lowers rates, cash becomes constrained, and the net is selling based on fear, then sellers may be soft on concessions. You may be able to buy a property or business with more concessions from the seller than you previously could.
Fear creates opportunity for those who are fearless and cognitive.