Food for thought as the market bumps along at the top. Can it continue?
"The combination of greed and optimism repeatedly leads people to pursue strategies they hope will produce high returns without high risk; pay elevated prices for securities in vogue; and hold things after they have become highly priced in the hope that there is still some appreciation left. Afterwards, hindsight shows everyone what went wrong: that expectations were unrealstic and risks were ignored."
Howard Marks, The Most Important Thing
"When the same or closely similar circumstances occur again, sometimes in only a few years, they are hailed by a new, often youthful, and always supremely self-confident generation as a brilliant discovery in the financial and larger economic world. There can be few fields of economic endeavor in which history counts so little as in the world of finance. Past experience, to the extent that it is part of memory at all, is dismissed as the primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present."
-John Kenneth Galbraith, A Short History of Financial Euphoria
