“Buy when there’s blood in the streets” is an old phrase in investing – and the blood isn’t symbolic. Baron Rothschild, a nobleman and member of a prominent banking family, made this comment following the Battle of Waterloo, where tens of thousands of people were killed. Napoleon was ousted as emperor of France – and Rothschild made a fortune investing during the panic that followed.
Fortunately, the trauma that hits the financial markets these days is usually less about carnage and more about corporate crises, recessions, unemployment, debt and natural disasters. But even taken less literally, the effect is the same: when things go wrong, investors run screaming from the scene as if it were a flaming battlefield – except for a few keen contrarian investors who see chaos as an opportunity and run right toward it. In fact, this scene of chaos is exactly what some experts say we’re seeing in the U.S. markets right now. So is it time to buy in? Discover the facts behind this long-held fundamental of the financial markets in my new article on GoldenGirlFinance.ca: http://bit.ly/x7AGiM