{"id":5321,"date":"2011-10-04T16:31:59","date_gmt":"2011-10-04T20:31:59","guid":{"rendered":"http:\/\/www.pgm-blog.com\/?p=5321"},"modified":"2011-10-04T16:31:59","modified_gmt":"2011-10-04T20:31:59","slug":"why-are-markets-behaving-irrational","status":"publish","type":"post","link":"https:\/\/www.pgmcapital.com\/nl\/why-are-markets-behaving-irrational\/","title":{"rendered":"Why are Markets behaving Irrational?"},"content":{"rendered":"

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Dear PGM-Capital<\/strong> Blog readers,
\nAfter a very bad and dramatic Q3-2011, the selling has continued on the first day of the fourth quarter. Most investors are asking themselves what is going on in the markets, do we have it all wrong, shall we sell everything and go into cash? Or will history prove that this was an unique buying\u00a0opportunity?<\/p>\n

The S&P-500 fell yesterday below its technical important support level of 1120 points to close at 1,099.23, which can be considered a very bearish sign. On the other hand investors flee into US-Treasuries and sent the rate of the 10 year-note, yesterday October 3rd 2011, to a new 52 weeks low of 1.75%.<\/p>\n

Gold and Silver went up yesterday, but today both are in the red, so the big question is. why are investors selling real money “Gold” and are investors willing to lent money to a country which is deep into debt for a period of 10 years against an interest rate of 1.75%.<\/p>\n

The answer is simple, capital markets due to greed and fear can behave in the short term very irrational, but in the longer terms markets will always reflect the underlying fundamental of a security.<\/p>\n

“Warren Buffett” the most successful investor of our time, provided us with some famous quotes and wisdom for us to become a good value investor and to excel in the long term in the global capital markets.<\/p>\n

Here below will provide you with some of his famous quotes which might be applicable in the current market\u00a0environment.<\/p>\n