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Right but why don’t they sell before the calamity if everyone knows these cycles repeat? People get caught up in it because they haven’t experienced real pain t
by dkrich 5y ago
Right but why don’t they sell before the calamity if everyone knows these cycles repeat? People get caught up in it because they haven’t experienced real pain themselves, think something new exists and because they believe they’ve made money because they’re astute and that they correctly assessed the market it becomes real.
- baq 5y agoIf you know there’s a bubble, you want to own it for as long as possible. The problem is, when it pops, it really really pops and you have nobody left to sell to faster than you expect, no matter how fast you expected it to happen. If they were smart, they were selling on the way up.
- dkrich 5y agoNot really true. The COVID crash was the fastest crash in modern history, playing out from peak to trough in about three weeks. But even so, you’d have had multiple sessions to get out before the worst hit but denial was strong. The 1987 crash played out over about six weeks. The dot com bubble burst over the better part of a year. 1929 was about ten weeks from peak to the absolute bottom. But when the selling begins denial takes hold and everyone believes it’s an amazing buying opportunity. Most every crash has begun gradually then accelerated towards the end.
- zz865 5y agoThe Nikkei crash was 14 years top to bottom and still hasn't recovered. The UK FTSE100 and French CAC40 are around the same level as dotcom boom 21 years ago https://finance.yahoo.com/quote/%5EN225?p=^N225 https://finance.yahoo.com/quote/%5EN225?p=^N225 https://finance.yahoo.com/quote/%5EFCHI?p=%5EFCHI https://finance.yahoo.com/quote/%5EFCHI?p=%5EFCHI https://finance.yahoo.com/quote/%5EFTSE?p=%5EFTSE https://finance.yahoo.com/quote/%5EFTSE?p=%5EFTSE
- dkrich 5y agoI’m talking about the crash phase