If you follow the market during the long holiday weekend on Friday, you may have noticed some terms used to describe market behavior:

-Sold out
-Collision
-Pull it back
– Retracement
– Reversal
– Destruction of wealth
– Volatility
-Bear market
-Collapse
– Dip
-Bubbles
– Profit taking
-Crisis
-Panic

Today, you may hear a different set of terms, which is no coincidence:

– recover
– BTFD
– Rebound
-Pricing
– Bounce
– Against the trend
– Bull market
– Bargaining
– calm
– Income
-Trend
– Greed

Whenever we have a one-day event that looks different from the previous days or weeks, I want to know how the language used affects investors. . . Is a”Sold out“Worse than”Pull back“? Should people be more worried”correct“Compare”dip“? What about plunges, imbalances, accidents, stumbles, collapses, ruins, depressions, failures, crushes, and sinking ships?

These descriptive phrases are exciting, but lack any precise meaning. NBER has one Formal definition of”economic recession,“But there is no similar definition for any of the above-mentioned market behavior phrases. In fact, the entire colorful list is floppy and imprecise. What information do they provide to investors?

not any.

Whenever you flip through the news and are frightened by the first drafts of history, treat this as a cliché. There is a high probability that the decisions made under these circumstances will be good for your long-term investment portfolio.

Before:
How do we experience time, the inflationary version (November 10, 2021)

Redefining bull and bear markets (August 14, 2017)

Cyclical bear market or long-term bull market? (March 20, 2015)

Lose news (June 16, 2005)

Bull market and jump market