"Every thing's a signal of everything being okay" is a myth. If you expect economists to agree that the recession is over or for headlines to turn optimistic, you will pay a high price for your stocks. The stock market is a leading indicator; it usually hits bottom six months before the economy does. Therefore, the best valuations are found when the news is at its worst. You should have the courage to buy based on the value of assets and the earning power of the business, not on the mood of evening news." - Peter Lynch
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Good morning,
"Every thing's a signal of everything being okay" is a myth. If you expect economists to agree that the recession is over or for headlines to turn optimistic, you will pay a high price for your stocks. The stock market is a leading indicator; it usually hits bottom six months before the economy does.
Therefore, the best valuations are found when the news is at its worst. You should have the courage to buy based on the value of assets and the earning power of the business, not on the mood of evening news."
- Peter Lynch