This source goes far back but the truth behind it goes even further! It is an intrinsic part of human nature to attempt to get out of investments and see themselves in a financially stable position at times of crisis, nobody wants to lose money. However, it is often this fear of uncertainty and possible loss which actually causes many to actually make a loss. On the other hand, this chaos creates a unique climate, for those who are prepared and savvy enough, to make a fortune.
The concept applies not just to the Stock Market but across the board. Property provides a very real example of it at work and demonstrates how the market will always bounce back. Those who sell at times of crisis often do so willing to compromise, those who hold on will find that things get better over time, but those who instead are prepared to invest carefully with no time constraints will be best off. Even in Gibraltar, with our geographic constraints there will be a seller out there willing to compromise on price and many investors holding back until things stabilise.
There will always be additional risks involved when investing in uncertain times, but with that risk comes additional reward. Some will be lucky, some will lose out but those with an eye for investment who are prepared will triumph.
Like many things, without the key ingredient which is preparation in this case, it would not be possible to make the most of the unique financial position we find ourselves in. By preparation I mean especially being cash rich. Now is probably the best time to have deep pockets or to set up a fund in order to pool resources and seek out the best investments. We have seen an increase in interest in setting up funds in Gibraltar and only expect the interest to grow as investors begin to see this financial crisis as an open door rather than a curse.
Be fearful when others are greedy, and be greedy when others are fearful.