“Fear-of-missing-out is more powerful than fear of losing.” FearGreedBubblesInvestInvestment PsychologyTrading PsychologyFomoFear Of Missing Out Author:Naved Abdali
“Markets are not efficient enough; that’s why we have market peaks and bottoms now and then.” BubblesRecessionFair ValueEfficient Market HypothesisMarket Cycle Author:Naved Abdali
“When people hear others’ stories about becoming overnight millionaires, they act upon it and invest their life savings, their houses, and their retirement funds.” RiskBubblesFinancial RiskDumb Money Author:Naved Abdali
“In a bubble, people demonstrate some sort of cult-like behavior. They defend their positions, not by economic logic, but by force. They do this by calling those who disagree with them dirty, and mocking people who give them prudent advice.” InvestorsBubblesTradingMarketsInvestment PsychologyRisksTrading PsychologyBoomTrading Cults Author:Naved Abdali
“Excess liquidity is the leading source of all bubbles.” BubblesMarketsLiquidityAsset Pricing Author:Naved Abdali
“When enough people believe that prices will keep rising forever, a bubble starts.” BubblesMarketsInvestment PsychologyTrading PsychologyPricesAsset Pricing Author:Naved Abdali
“In a bubble, people are ready to pay any price without any regard to intrinsic value or any value whatsoever because they believe they can always sell it for a profit.” BubblesTrading PsychologyIntrinsic ValueFair ValueAsset Valuation Author:Naved Abdali
“The combination of our natural desire to be better than our peers, our faulty assumption of dodging risk, and our flawed belief of having better chances than others, pushes us into excessive greed territory. We take more significant and sometimes fatal risks.” GreedBubblesInvestment PsychologyTrading PsychologyFinancial RiskCognitive BiasesInvestment BiasesTrading Biases Author:Naved Abdali
“It is always better to avoid hyped stocks and desire to double your money in no time.” InvestingBubblesTradingInvestTrading PsychologyStocksShares Author:Naved Abdali
“When an economy or market is flushed with excess liquidity, people start to invest in unrealistic possibilities.” EconomyBubblesMarketsLiquidityAsset Pricing Author:Naved Abdali
“If the buyers believe that they can sell assets to other buyers at a higher price, then the purchase price becomes irrelevant.” BubblesTrading PsychologyStocksAsset Pricing Author:Naved Abdali
“In a rising price environment, people tend to throw analysis of risks out of the window. In their mind, the only possible risk is not to join the party.” RiskBubblesValuationFinancial RiskFair ValueRisk AnalysisAsset Pricing Author:Naved Abdali
“in a rising price environment, party culture and a gambling mindset take over. People think it is easy to make money, and it is fun. The stock market is a big giant casino where the odds are in favor of gamblers. The more you play, the more you win. However, the facts are precisely the opposite.” GamblingBubblesPriceMarketsStock MarketTrading PsychologyStockShares Author:Naved Abdali
“In a rapidly rising market, the stretch of prices between two points of time is amplified, then so is the general public’s behavior towards prices.” RiskInvestingBubblesTradingMarketsBoomPrices Author:Naved Abdali
“Analyzing prices is not wrong. However, picking inflated prices as your only source of information is terrible.” BusinessRiskInvestingBubblesTradingPriceTrading PsychologyFinancial RiskBoom Author:Naved Abdali
“Fear of missing out single-handedly caused every single investment bubble inhuman history. No other emotion is more powerful than FOMO.” FearRiskBubblesFomoFear Of Missing Out Author:Naved Abdali