“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
“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