World Blog by humble servant. At the bottom of the sell off long term position are establish low risk and high returns.

At the bottom of the sell off long term position are establish low risk and high returns. Establishing long-term positions at the bottom of a market sell-off can indeed offer the potential for low risk and high returns, but there are several considerations to keep in mind: Low Risk Perception: After a significant sell-off or during capitulation, asset prices are often at or near their lows, which in theory reduces the risk of further significant price declines. The risk here is perceived as low because: Valuation: Assets might be undervalued compared to their intrinsic or long-term value, providing a margin of safety. Sentiment: With most of the selling pressure exhausted, the likelihood of prices dropping much further might be lower. High Returns Potential: Recovery Potential: If the market or the specific asset rebounds, the percentage gains from these low levels can be substantial. History shows that after significant downturns, markets often recover over time, providing high return...