42sec snip

We Study Billionaires - The Investor’s Podcast Network cover image

TIP658: Peter Lynch’s Guide to Investing in Your Expertise w/ Kyle Grieve

We Study Billionaires - The Investor’s Podcast Network

NOTE

Market Fear: Perception Over Reality

The Cuban Missile Crisis, representing the highest threat of nuclear war, resulted in only a 3% decline in the stock market, highlighting a surprising resilience among investors. In contrast, President Kennedy's intervention in the steel industry led to a drastic 7% market drop seven months later, indicating that Wall Street reacted more negatively to perceived government interference than to the actual threat of nuclear conflict. This reveals that market psychology often prioritizes immediate business conditions over global crises.

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