I try hard to be a rational investor and not panic when I hear bad news about a company I invest in. I have try even harder to ignore the nattering nabobs of negativity when broad economic news is released, and it looks bad.
However, the murmurs I heard last year about how the stock market is due for a reversal have turned into roars. As I have said before, being a contrarian can be very profitable. I have also said it is impossible to time the market and get in and out at exactly the precise time. But sticking in the market is getting to be a tougher proposition for me in the short term. More and more pundits or investment professionals see at least a small downturn coming if not a huge 10% slide.  Wall Street has a heard mentality, and no matter if the negativity is created out of real or perceived problems; soon it will not matter.
A tipping point will occur soon, if it has not already happened, that the stock market must have a period of negative returns to appease the investing gods. Once that happens a small downturn like at the end of February could turn into to a massive exodus from the market, especially if investors behave as they did and do in regards to the housing market.
What do you think?