What’s the key in all of this? To know where the pendulum of psychology and the cycle in valuation stand in their swings. To refuse to buy — and perhaps to sell — when too-positive psychology and the willingness to assign too-high valuations cause prices to soar to peak levels. And to buy when downcast psychology and the desertion of valuation standards on the downside cause panicky investors to create bargains by selling despite the low prices that prevail. As Sir John Templeton put it, “To buy when others are despondently selling and sell when others are greedily buying requires the greatest
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