Fresh off the second huge stock market rally from a frightening decline in the past year, I thought it would be timely to do a bit of reflecting.

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At one point, the Dow index had dropped over 2, points in a matter of weeks. Of course, I felt the same urge back in August during the flash crash.

And, what happened next? The stock market quickly returned to pre-crash levels in both cases within 2 months.

When you have the greatest urge to sell, is usually when you should be buying. Emotions mess with your rational thought process in the short-term. However, in the long run, panic tends to subside and market normalcy returns.

There is a debate about the origination of this quote. Warren Buffet claims that his mentor Benjamin Graham once wrote this. Buffett claims Graham used to say this in his classroom of which Buffett was a student.

A similar quote can be found from Buffett in reference to what Graham said in the Berkshire Hathaway shareholder letter ,. Regardless of the exact origination, the quote is brilliant and it is just as relevant today as it was back then — market prices represent an often irrational short-term popularity contest similar to voting for a political election, but in the long run they tend to gain in value due to return on capital, economic growth, and inflation and for individual investors, dividends paid — similar to a weighing machine.

I WANT another flash crash. I want a fire sale.

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