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> Yeah, that is called cope. No that is something anyone shorting needs to understand fully and deeply. e.g. the dotcom bubble was clearly a bubble with most
by harry8 3y ago
> Yeah, that is called cope.
No that is something anyone shorting needs to understand fully and deeply.
e.g. the dotcom bubble was clearly a bubble with most dotcoms absolute garbage investments. People looked at it and correctly saw it as such and decided to short. They were 100% correct and still lost big money because it took too long to be proven so.
Dotcoms as they were in 2000 were ridiculous investments that have gone badly south. You couldn't buy google, you could buy Looksmart, repeat that pattern for basically every company that ended up successful. Social media was not a thing. Internet advertising was an utter joke from every level of analysis (is it still? No clue). The thing was clear and obvious and did pan out as expected but man alive it took some time.
- whimsicalism 3y agoFunny how you only get the people crowing about how it is a bubble after the fact. If everyone knew it was clearly a bubble, it would not be a bubble.
- harry8 3y agoIn a game of chicken, everyone who plays does so knowing the cliff is right there. Riding what you know is an investment bubble has a little more upside than driving toward a cliff. Same exit strategy, lesser consequence, similarly reckless in attitude. At the time people showed the necessary cashflows & growth required for profitless doctcom companies to justify their price and nobody could make it make sense. You'd have to be pretty stupid to think greater fools buying can go on forever. I'm sure some people in finance "believed" in it and others claimed to. Not many in the circles I moved in even paid lip-service unless they were in the IPO business. Plenty played. Did your experience differ?