Early in my career I received a very simple, yet powerful piece of advice about the markets:
In a bull market you're not as smart as you think you are and in a bear market you’re not as dumb as you think you are.
The problem is that fear and greed don't always allow us to come to these conclusions in the moment — we tend to default to the opposite.
As markets continue to fall this year many investors are likely beginning to question their own intelligence just as people in 2013-14 were feeling pretty good about how brilliant they were in a rising market. Along these same lines, here’s a quick comparison of some of the different feelings and perspectives investors have depending on which kind of market we happen to be in: