One of Warren Buffett’s most enduring principles is to “be fearful when others are greedy and greedy when others are fearful.” This past spring was a textbook case of the latter when markets were in panic mode after President Trump’s tariff-themed “Liberation Day,” and fear was everywhere. Investors were practically reaching for their parachutes.
Fast forward a couple of months, markets are climbing, risk appetite is back, and judging by some of the commentary out there, you would think corrections were banned by law.
Are we getting too comfortable again? Is this renewed optimism justified, or is it just the calm before another tweetstorm?
As always, markets can humble the overconfident and reward the disciplined. Something tells me Buffett’s advice might soon come in handy again for those still listening.
I would love to hear what you are seeing or sensing out there. Please send me your feedback via email.