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Just an hypothesis (which applies to the stock market as well): if you already thought things were overvalued, but were just waiting for the right moment to cas
by rossdavidh 7y ago
Just an hypothesis (which applies to the stock market as well): if you already thought things were overvalued, but were just waiting for the right moment to cash out, then whether this moment makes rational sense or not, you get out now because you were going to get out soon anyway.
Also, you may think everyone else is going to be "irrational" in this way, and wish to get out before they do. Sort of like buying toilet paper because you're worried about everybody else hoarding toilet paper.
- colechristensen 7y agoPeople have been saying for a while the stock market was ripe for a downturn. It had been in one of the longest periods of consistent gains ever. Lots of things were overvalued and with the double hit of a pandemic which is certainly already having economic effects and an oil war within OPEC, one tends to think that companies are going to start making significantly less money (compound with aging population not being replaced with young people). Jumping off a burning ship isn't necessarily irrational.