Paul Ferraresi

In my 35+ years as an investment professional, this past year for stocks and real estate, has been a real “doozie.” I will assure you 3-5 years from now you will look back to now as one of the greatest investment opportunities of a lifetime. I see so many people flocking to stores advertising 10-20-30% off various products. Yet, these same people, with the stock market on sale @ 40-50-60% off, are running from the “great companies of America.” But, that is a normal human reaction. An example… we as human beings are wired backwards from the factory. You see we are all trained that low prices are good for us and high prices are bad. A recent example… when gas prices were high motorist stayed home and did not buy. Now that prices have dropped in half…they are buying again.
Here is another example…if you went into the grocery store and a sign was up… manager’s special, today only, small can of tuna fish normally 99¢, now on sale for 39¢. If you liked tuna fish you would load up the cart. Next week you come in and see a sign… manager’s special small can of tuna fish normally 99¢, now selling for $4.25. You would tell the manager he was crazy, (probably run home go to the pantry and return the tuna from last week hoping to get $4.25)
Now the low price good, high price bad is true in everything but the stock market. When a stock price skyrockets from $10 to $50 everyone wants to buy at $50. Yet when the price drops from $50 to $10 no one wants to buy. IT IS ON SALE.
Do you buy tuna @ $4.25 and when the price is on sale @ 99¢ do you return the $4.25 cans you bought to the store and hope to sell them back at the sale price of 99¢? Is this making sense?