Headlines in 1974

Dow Industrials Down 46%

President Nixon Forced to Resign

United States Withdraws from Vietnam

Arab Oil Embargo in Full Swing

Worst Recession Since Great Depression

Largest Collapse in U.S. Retailing History- W.T. Grant

New York City Can’t Pay Its Bills- May Declare Bankruptcy

(Above noted from Market Comment from John S. Wilson at Morgan Keegan.)

If you had bought stocks in 1974 in this atmosphere of pending doom you would have bought at the bottom of one of the greatest stock market booms in history.

In hindsight not flinching in such a fear laden atmosphere seems like the obvious action, but when you are in the middle of the storm, you only seek safety.

The next several months may be bumpy, but times of such fear usually unleash bargains.

Warren Buffet is buying.

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