Broker Check

(248) 982-6148
7 West Square Lake Road
Bloomfield Hills, Michigan 48302
*by appointment only


Waiting for the Tech Crash, Amygdala hijacks, & Groundhog Day

Waiting for the Tech Crash, Amygdala hijacks, & Groundhog Day

| March 10, 2022

If you were wondering when the Tech Crash was coming, it actually started in February 2021, when trendy meme stocks, speculative SPACs, and red hot non-profitable growth names peaked.

Some of the pandemic's hottest names are now down 70%, 80%, even 97%.

(*Not recommendations. Illustrative purposes only. Always consult your trusted financial advisor)

In fact, nearly 50% of the Nasdaq composite (about 3,700 companies) is down 50% or more.

For the prepared, there is an upside to every correction. That's when the world's highest quality companies go on sale. 

"The New York Stock Exchange is the only store in the World where consumers sell stuff when it goes on sale" 

-Warren Buffett

As counterintuitive as it might seem, when the bears run rampage down Wall Street, that's the safest time to put your hard-earned savings to work.

So why do so many investors shoot themselves in the foot repeatedly?

An Amygdala hijack refers to the fight-or-flight response that takes place when you are faced with a perceived threat. At Maendel Wealth we get calls from prospects regularly who feel "cursed" by the market, having BOUGHT not only near exact market tops, but bailed out and SOLD near exact market bottoms. That's about as close to a wealth destroying inverse application of the old maxim "buy low, sell high" as you can get. 

These folks are some of the smartest, most experienced professionals you could ever hope to meet, and yet they are done in by their own amygdalas, the "cave-dweller" part of the brain controlling our fight-or-flight response, cycle after market cycle.

If your investing ventures feel like living in the movie "Groundhog Day", where, despite your best efforts, things just keep repeating themselves, you could benefit from an experienced financial advisor.

Let's talk!

Chat with Maendel Wealth

Bill Murray in the movie Groundhog Day (1993)

"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.” - John Templeton