How To Find Investment Opportunities In The Next Trade War

Aggressive trade wars, government shutdowns, and unexpected disasters can send markets careening to the downside. The short-term damage to investments can be severe. But the key word here is “short.” And therein lies the opportunity for long-term investors like those saving for retirement.

To fully appreciate the phenomenon and why it’s possible for anyone to take advantage of it, you must first understand the concept of “recency.” Derived from studies in behavioral psychology, when applied to finance, it can lead to market extremes. Whether it’s market highs or market lows, recency explains it all.