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That's a pretty bad way to look at a bubble and feel calm. In reality, most bubbles at start are bought in by smart money, insiders, big boys etc. and at the en
by npalli 11y ago
That's a pretty bad way to look at a bubble and feel calm. In reality, most bubbles at start are bought in by smart money, insiders, big boys etc. and at the end (peak) are bought by retail investors - mom&pop, grandmothers etc. who are not sophisticated and put their life savings or borrow on margin and bet on single stocks (not the index). They see the rise in individual stocks and get in too late. These retail investors are feeling the pain right now and their loss is huge.
So yeah, I wouldn't feel calm about the bubble bursting.
- holdenc 11y agoIt's certainly a shame when unsophisticated investors pile in after a huge run-up in prices. The good news is that if they got in one year ago they are likely still above water. If they got in after that they should have been wary of bubble prices.
- jandrese 11y agoYou are assuming the slide is going to stop today and/or that they can pull their money out today. If there is a huge rush to pull money out of the market it will accelerate the decline. A classic bubble pop.
- digi_owl 11y agoBecause the nice guys wearing suit and tie tell them it is all perfectly save, just sign the dotted line and they will put your (loaned) money to work on the market...