... hedge funds are sharply reducing risks, lowering leverage and "waiting for better days." Even the “Magnificent 7,” once growth locomotives, are now met with caution – their high concentration in indices recalls the vulnerability of the dot-com bubble, and global risks (such as Fed rates, geopolitics, recession) draw parallels with 2008. An important lesson from 2000 and 2008 is that periods of extreme pessimism create the groundwork for subsequent rallies. When all bad news is reflected in ...

... cycles. Buffett has accumulated large amounts of cash at market peaks before. In the late 1960s, he dissolved his investment fund, feeling that available stocks were overvalued. In the late 1990s, Berkshire remained largely inactive in the overheated dot-com market, avoiding the bubble and subsequently seizing the opportunity to buy undervalued assets after its burst. Prior to the 2008 financial crisis, Buffett also maintained substantial reserves and minimized risks, allowing Berkshire to invest in several companies under favorable ...

... if the initial calculation was correct. Finally, we cannot fail to mention psychological and speculative aspects. The market is driven by people, and sometimes asset prices deviate significantly from reasonable levels due to greed or fear. During a bubble, investors can buy up shares of trendy companies en masse without regard for fundamental valuations, and such shares will remain overvalued for a long time (an example is the dot-com boom of the late 1990s, when many Internet companies were incredibly expensive without making a profit). Conversely, in the midst of panic, excellent companies can be traded for pennies because everyone is fleeing the market. Fundamental analysis ...