Sun Tzu applied to the Financial Markets
Have you read the famous ancient book “Art of War” by Sun Tzu? It seems that many of the wise words in this revered military text hold true in the financial markets. My favorite quote:
“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle”
Keep this in mind before making any trade/investment decisions. Emotions tend to override judgment when reason is limited.
One of my favorite legends in the business, Bill Fleckenstein, gave an interview on Yahoo Finance. When he speaks, one should listen. After all, he nailed both Nasdaq and housing bubble, not only the top but also the aftermath at the bottom. It is a delight to listen to his views on the markets and his conclusions are similar to the those by Sun Tzu.