Markets Are Falling Out of Bed: Is It Time to Buy Yet?

The most oft-quoted, some would say over-quoted phrase in trading and investment analysis is Warren Buffett’s entreaty to be “Fearful when others are greedy, and greedy when they are fearful”. In part, that overuse may be because those like me that write on the subject are often not particularly original thinkers, but it is also because it is a succinct way of saying something that is blindingly obvious, but which human nature makes it very hard to adhere to.

We should all sell into rallies and buy on dips, but we tend to do the…