Chris Davis: The Insanity Of Market Panics

Johnny HopkinsChristopher DavisLeave a Comment

In his latest presentation titled – The Mindset Required to Navigate Crises and Uncertainty, Chris Davis provides a great illustration of the insanity of market panics. Here’s an excerpt from the presentation:

Davis: Let’s think of the really bad thing. You know, the thing your clients may be terrified of. What if I’m down 10% over some period of time. Now, we might say that’s not so scary but it has a big impact on client behavior.

And you know roughly 12% of all rolling one year periods the market was down more than 10%. If you take that to five-year periods, the market was down more than 10% after a rolling five year period in only 3% of the time, and none for the ten years.

So people panic, people get enormous fear when the market’s down 10/20 percent because they picture it continuing in perpetuity.

You can watch the entire presentation here:

The Mindset Required to Navigate Crises and Uncertainty

For all the latest news and podcasts, join our free newsletter here.

FREE Stock Screener

Don’t forget to check out our FREE Large Cap 1000 – Stock Screener, here at The Acquirer’s Multiple:


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.