“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
“A valuation, which is established as the outcome of the mass psychology of a large number of ignorant individuals is liable to change violently as the result of a sudden fluctuation of opinion due to factors which really do not make much difference . . . since there will be no strong roots of conviction to hold it steady.” PsychologyInvestingBubblesFoolishnessSpeculationBandwagon Book:The General Theory Of Employment Source: The General Theory Of Employment
“You can never feel a cup of someone whose taste is bubbles when you're spirit.” SpiritMindsetAlcoholContentmentBubblesSpiritedPreferencesGoitsemang MvulaAbstractions Of The MindCup Author:Goitsemang Mvula
“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