At this time, you will see a large number of naive investors crying and wailing, "Why is it still falling despite such a perfect earnings report? What's wrong with the market?" Then they encourage each other, "Be patient, don't cut losses, survive..." Little do they know that macro tensions have turned the first-order reaction function (good earnings = buying spree) into a second-order reaction function (good earnings = selling spree).

The more it falls, the more desperate they become, falling endlessly to a level they can't understand. When macro tensions reverse/ease and a rise comes, the naive investors habitually think it's another trick and cut losses during the rebound, only to see the price rise without looking back. They think to themselves: The stock market is indeed a scam, give me back my money, I'm done. 😅