Jim Cramer and Maria Bartiromo hosted a Markets In Turmoil special last night on CNBC where they both agreed that we are going to hell in a hand basket. If that is not a contrary indicator than I don't know what is. Everybody says they want to buy when there is blood in the streets but few actually do. The best time to buy has always been when it feels the worst and there are all the reasons in the world to sell.
It was so easy to buy after the February employment report when everything seemed great but it turned out to be a poor time to buy. The correct time to buy was last August after S&P downgraded the US credit rating. The current situations feels a lot more like August than February. Some sentiment indicators are not quite at the extremes we saw in August but they are getting close. The situation in Europe is very scary but it was present in February as well. It was just being ignored. Even if one has a bearish long term outlook it generally does not pay to sell into moments of hysteria. It might make for good TV but it makes for poor investing.