Here is an old adage I have always tried to adhere to: “When everyone else is walking, you should run – and when everyone else is running, you should walk.” In other words, it is almost always beneficial to do the opposite of what most people are doing.
When everyone else is walking (being cautious) you should be brazenly looking for opportunities to take advantage of because those opportunities won’t last long. For example, when everyone else is panic selling cows at the bottom of the market, you should be buying cows. Prices will eventually go up. The best cure for low prices has always been low prices – and vice versa.
When everyone else is running (caught up in the excitement) you should remain calm and consider the long-term implications. For example, when everyone else is frantically buying cows at high prices, you should be selling cows. The price will probably crash before those expensive cows produce two calves – and the cows will only be worth half as much as the purchase price.
Quote Worth Re-Quoting
“Watch what everyone else is doing – and do the opposite. The majority is always wrong.” ~ Earl Nightingale