Crisis of Confidence

Parent

Crisis of Confidence occur when investors lose confidence in the past assumptions they had about the asset in questions performance

Strategies

	Fundamental Analysis
	Value Investing

A Crisis of Confidence usually causes prince to overshoot on the downside, thus creating a buying opportunity
An increasing drop in investing due-diligence usually forbears a confidence crisis
Examples of this include:
- Reduction in loan covenants
- Falling interest rates
- Focus on stories and growth vs. valuation and fundamentals

Event Types