BLOOD IN THE STREETS – Facebook Closes Under IPO Price On First Day Of Trading

Buy When There’s Blood In The Streets

Baron Rothschild, an 18th century British nobleman and member of the Rothschild banking family, is credited with saying that “The time to buy is when there’s blood in the streets.”

He should know. Rothschild made a fortune buying in the panic that followed the Battle of Waterloo against Napoleon. But that’s not the whole story. The original quote is believed to be “Buy when there’s blood in the streets, even if the blood is your own.”

This is contrarian investing at its heart – the strongly-held belief that the worse things seem in the market, the better the opportunities are for profit.

Most people only want winners in their portfolios, but as Warren Buffett warned, “You pay a very high price in the stock market for a cheery consensus.” In other words, if everyone agrees with your investment decision, then it’s probably not a good one.

Going Against the Crowd

Contrarians, as the name implies, try to do the opposite of the crowd. They get excited when an otherwise good company has a sharp, but undeserved drop in share price. They swim against the current, and assume the market is usually wrong at both its extreme lows and highs. The more prices swing, the more misguided they believe the rest of the market to be.

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NASDAQ Official Price – FB
Open Price/Date

$ 42 May 18, 2012
Close Price/Date

$ 38.37 May 18, 2012

T.G.I.F. (Thank God Its Freeday).
It’s been quite a busy business day today which brings us to the evening hours to get our weekend started with some sound and wise expert perspectives to consider as listed above, plus it’s a good time to step outdoors.

Stay tuned.

A different perspective to consider.