When the market enters a state of panic, most people choose to cut their losses and exit. Seeing their positions continuously shrink, they naturally seek the stability of cash for psychological comfort.
During the semi-peak period of the market, most funds that are waiting to cut losses will re-enter the market. They constantly reassure themselves that they will achieve significant results, analyzing the next stage of market development based on K-lines and real-time news updates. As time goes by, the semi-peak period reaches the peak of a bull market, while the news promoted by the market features various 'mysterious individuals' who have achieved significant results, and every retail investor entering midway will fantasize about becoming the next 'winner' featured in the news.
Therefore, regardless of whether it is a bull or bear market, most investors are in a state of loss, with bull markets making it easier for investors to experience concentrated losses.
When you find every piece of real-time news data makes perfect sense, you must be a person with problems, what Munger would call a 'fool'.
