I am no big fan of Jim Cramer (I think he yells too much), but few can quibble with the investing rules he has been outlining on TheStreet.com. His latest rule is: Expect, Don’t Fear Corrections. Corrections are part of the game. Long-term investors should love corrections when it enables them to buy quality assets at bargain prices. However, this is easier said than done. Behavioral Economists point out that investors experience loss aversion in bear markets (we feel twice as much pain from losses as the pleasure we feel from gains). It is precisely when the markets seem to be in a free fall and when we fear to open the monthly brokerage statement, that we should step up to the plate and buy some quality assets.
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