posted by mark
on Sat, 06/13/2020 - 04:53
Every bubble or euphoric period — from tulips to South Seas shares to Nifty Fifty to Dotcom stocks — must start with a rational idea. As the story spreads, the crowd mentality takes over, till it eventually peaks. Then every dip lower becomes a false buying opportunity.
- Author unknown
I find the last statement of the quote above to be particularly salient in the current market environment. Sometimes "the dip" is not a buying opportunity, but "the song of the siren". Whether it is or not is something a true investor spends much time thinking about.
