“BE FEARFUL WHEN OTHERS ARE GREEDY AND GREEDY WHEN OTHERS ARE FEARFUL” W. BUFFETT

Why is bad if the market falls? Hey, hang on a second. The market is in correction and many folks lose money. Which we think is a bad news. Bad news, really? But wait... if the only way I can make money in the stock market is to buy low, why is a falling market bad news? You can look at the falling market not a problem, but a great opportunity – that is the via negative approach. Try to look at the US market recent dips like a good buying chance.

Do you really think Warren Buffet shows any sign of worries now about the market, I doubt that. I presume this dip when S&P 500 is down 7.4% from its record closing high is really nothing for him. He experienced much bigger disasters early on. Obviously he's buying stocks now, why not? In his interpretation the best time to buy any asset is when is cheaper, not when it’s more expensive. He said on CNBC. “I like buying it as it goes down, and the more it goes down, the more I like to buy,” On contrary the retail investors, pundits and forecasters have anxiety I can bet on that.

The bottom line is that the market has been so high for so long, that a pullback is most likely good for the market, and just think, now is a buying opportunity! Eventually, no one can predict the market, but a lot try, some win, some lose just like at the racetrack. When it does finally come the recovery, get in and put your money into the market.

I wouldn’t say buy immediately just wait for the confirmation, for instance technically if the DJIA closes above the 16.400 resistance key level. But can the market fall even more? Sure it can.

The BFM Assets Team.