'What Makes A Financial Bubble?'
Thanks to a subscriber for this article highlighting academic research that confirms what we knew all along; crowds are irrational. Here is a section:
What’s the bottomline? Experienced traders investing in a market with inexperienced traders may be better served by buying early in a trend, riding the momentum for longer than expected, and carefully planning an exit. While tricky, this approach may better serve the “rational” investor relative to a more intuitive approach of selling an investment the minute it moves a penny beyond fundamental value.
