Savage share market sell offs are equal parts terrifying and frustrating for small investors.
Terrifying because nobody knows how long the sell off will last or if early bargain hunters will be burnt. And frustrating because investors are often fully invested at market tops and lack cash to buy back in.
Professional investors get excited by market sell offs. Those who increased their portfolio’s cash weightings as markets rallied have cash to buy stocks at lower prices. Having sat on the sidelines as valuations became stretched, they are back in the game, buying good companies below fair value.