Be greedy when others are fearful

I was definitely curious. When the absence of volatility we saw during the first half of 2015 ended, would the stock market correct or would the rally continue?

We now know the answer.

There is good news in my opinion.

Discounts Arise

I lack for a crystal ball to pick a bottom. But I do sense that the discounts broadly available in the market make the prospects for adding long term investments attractive.

When you buy closed end funds at wider-than-average discounts, there is a prospect to benefit when the discounts “normalize” to historical means.

That prospect can augment the long term benefits of net asset value returns in various asset classes.

Greed and Fear

I’m a believer in the old market adage: Be fearful when others are greedy and greedy when others are fearful.

I continue to favor using closed end funds in several Covestor models like Taxable Income, Long Short Opportunistic, and Well Intentioned Activism styles.

Photo Credit: Clause Reble via Flickr Creative Commons//

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The post Be greedy when others are fearful appeared first on Smarter InvestingCovestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at