Various clichés abound in the investing world. While many are gross oversimplifications of dynamic complexity in behavioral finance, some of them are timeless pieces of wisdom. Included in this latter half is the famous recommendation by Baron Rothschild to “buy when there is blood in the streets.”
This strategy is never cut-and-dry however. Calling bottoms can be a dangerous game—referred to among traders as trying to catch a falling knife .
Different metrics exist to quantify […]
