Investors Are Getting Greedy. I'm Getting Fearful.
In his 1986 letter to shareholders, Warren Buffett noted that greed and fear are recurring phenomena in the financial markets. The investing legend continued:
[T]he market aberrations produced by [fear and greed] will be equally unpredictable, both as to duration and degree. Therefore, we never try to anticipate the arrival or departure of either disease. Our goal is more modest: we simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
A tide of greed has swept across the stock market -- or at least parts of it -- in recent weeks. Investors should take this as a signal to become more cautious about their investments. I have done just that by selling my shares in some of this month's biggest winners, such as Dillard's (NYSE: DDS).
Source Fool.com
