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"And as always, even if you have identified a bubble, trading profitably on this is subject to the efficient market hypothesis." Timing is hard in the short ru
by shuckles 7y ago
"And as always, even if you have identified a bubble, trading profitably on this is subject to the efficient market hypothesis."
Timing is hard in the short run, certainly. However, if you believe you have identified a true bubble, it seems wise to scrutinize long term commitments requiring outsized returns from the underlying asset? Practically, this would mean not tying your career to bubble technologies; not settling down into a bubble-priced home-cum-retirement nest egg; etc.
- danieltillett 7y agoYes. I own a very overprice home, but I have avoided joining the masses and becoming a part-time landlord (the great Australian dream it seems).