The financial market always has cycles of growth and adjustment. When the market declines, many investors react by selling off assets for fear of loss. This is a time when assets are actually priced lower than their real value, creating opportunities to buy at attractive prices.


The psychology of the crowd often leads to irrational decisions. When a large number of investors panic sell, prices will plummet. Wise investors will not be caught up in this psychology but instead, they see it as an opportunity to buy in.
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