Does Fear or Greed drive the people around you???

So next time you are at a family gather, out with friends or in a casual work conversation take a minute and get a sense for the vibe of the group.

Is the group talking about everything with a negative slant?  For example housing is down, stock market, foreclosures are up, etc.

Or

Is the group talking about everything on sale?  For example just today HP is down 20% in the stock market.  Heaven knows I am not a stock guy and I don’t play one either but does anyone really think HP as a whole is worth 20% less today than yesterday? Again note I am not a stock guy this was just the most glaring issue of the day.

I want you to do this little exercise because it is the simplest form of understanding the mood around you.  No matter how positive or negative you are if the group around you is on the opposite side they will eventually drag you over.

For the more advanced players think about it this way.  If everyone is negative it is a good sign that a bottom is close …  

We can make lots of money in this real estate market you just need to know where to look …

Good Investing