The disaster playbook is a well-thumbed document these days as investors try to make money in the wake of the disaster in northern Japan. The typical sequence of events in any disaster begins with sheer panic, followed by predictions of utter chaos, spooking financial markets and causing prices to plummet.
Eventually the panic subsides and it becomes clear that the impact on the global economy is slight. The playbook tells the investor to buy while there’s blood on the floor and profit from the market’s overreaction.
The evidence to support the playbook is strong. The man-made…
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