3 Things I Learned In The Last Speculative Bubble
3 Things I Learned In The Last Speculative Bubble that explain why I'm not going hog wild in this one…
Henry Blodget Mon, November 22, 2021
Goldman said fears of a bubble are overblown
I was Wall Street's top-ranked internet analyst during the dot-com era.
Detailed below are the three main lessons I've learned about bubbles during my career — and how I'm handling the latest ones in stocks and crypto.
Many market gurus believe we're in the middle of one of the biggest speculative bubbles in history. I think they're right. But I'm not betting the farm on it.
I was an internet-stock analyst during the dot-com bubble two decades ago, so I have some firsthand experience with financial bubbles. I've summarized the experience here, along with my subsequent run-in with the SEC.
In a future article, I'll explain why I'm in the bubble camp. But here, I'll just share three things I learned last time that explain why I'm not going all-in in either direction this time around.
1. No one knows what will happen, including your favorite market gurus.
Back in the 1990s, I got to know some of the most sophisticated professional investors in the world. As I talked with them, and learned from them, I realized that one of my long-held assumptions about Wall Street was wrong.
I had assumed that, somewhere, there were some investors who were so smart and well-informed that they knew what was going to happen.
Instead, I learned that no one knows what is going to happen.
Some investors' guesses are more sophisticated and better informed and reasoned than others, but they're still guesses. No one actually knows.
Why does this matter?
It matters because it's important to remind yourself that your favorite market gurus don't know what will happen. Not George Soros. Not Warren Buffett. Not Ray Dalio. Not your crypto-zealot buddy or your trusted financial advisor. So don't put too much stock in what anyone says or thinks will happen. They don't know.
To continue reading, please go to the original article here:
https://finance.yahoo.com/news/3-things-learned-last-speculative-172200078.html