𝐓𝐡𝐞𝐫𝐞 𝐢𝐬 𝐚𝐥𝐰𝐚𝐲𝐬 𝐚 𝐛𝐮𝐛𝐛𝐥𝐞 𝐬𝐨𝐦𝐞𝐰𝐡𝐞𝐫𝐞.
Timing the market is hard. It is difficult to successfully enter and exit the bubble as their beginning and ending are hard to determine.
The list of bubbles is constantly supplemented with additions and cool acronyms. Whether it is Tulip Mania, Japan’s Nikkei, Russian stocks, US Dotcom, US Housing, or more recent candidates such as Bitcoin, FAANG, and AI, investors end up with heavy losses if they enter during the last phases of the bubble.
Psychological factors, such as Herd mentality, Fear-of-missing-out (FOMO), or Greater fool theory, usually lead to the formation of a bubble.
The bottom line – Before diving into the world of new hyped assets, it’s crucial to constantly question yourself: What is the reason behind my decision to invest in this asset at this moment?
Source: Apollo / #investing #markets #stockmarket
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