Lower Prices vs. Fundamentally Low Prices

Jan 1998 //
Optimism/Pessimism
Investing

Buying low and selling high is much harder than it seems because, for example, it requires an investor to distinguish between merely lower and truly, fundamentally low.  Since 1987, US investors have become accustomed to buying almost automatically after dips in the market.  Such ‘blind’ buying can be a mistake when the investor is unaware whether there is real value at the lower prices.