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In hindsight, maybe. You only know it's a bubble when it bursts and the markets come back to earth. Outside of that it's rational to invest in something that'
by okaramian 16y ago
In hindsight, maybe. You only know it's a bubble when it bursts and the markets come back to earth. Outside of that it's rational to invest in something that's growing.
- danenania 16y agoI still disagree. During bubbles, it is often apparent through straightforward financial analysis that companies are overpriced. Investing in a company whose price isn't supported by underlying assets and earnings because it's 'hot' is a speculative gamble on the extremely difficult to predict group psychological whims of the marketplace, not a rationally conceived value investment.