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Eric Gemelli predicts market crash

by admin on January 10th, 2010

The bear market has created a lot of anxiety, but there is good news around the corner.

Many investors have been brainwashed to think that knowing the future movements of market is impossible. The fact is markets consistently demonstrate repetitive patterns.

Investors like to think they make independent decisions based on rational thought and research. They miss the fact that millions of others are reaching the same conclusions at the same time in response to the same data. This is very similar to your teenager: they all want to act different together. It’s a type of mob psychology.

So, the reality is that people in a bull market see a nice profit and lock it in. This involves selling the shares, which causes the price to dip, giving another group that was sitting on the sidelines a chance to get in. This creates a strong surge as the people afraid of missing out start buying. And the cycle goes on.

The same happens in reverse in bear markets….To read more see:

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