Euphoria In The Stock Market Makes Us Do Dumb Things
Euphoria in the stock market is like love. We fall in love with the person who mesmerizes us. The worst that happens is the person rejects us. But euphoria in the stock market is far more insidious. It does not reject us. It allows us to invest based on our feelings. Then it punishes us.
It’s unsympathetic that we purchased a stock 80% above its value. Just because many investors ran that stock up to unrealistic levels. Euphoria will do something that we have all watched on Charlie Brown. It snatches the football away. Our overvalued stocks plunge back to earth. Then it dumps us on the side of the road. It’s stolen half of our principal investment. We’re left to lick our wounds. That is what euphoria will do for us.
So when euphoria comes calling, “REJECT THE DATE!” It will only break our hearts and take our money.
Have a Great Weekend.
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