this is a bubble, page-3

I really think it bears (pardon the pun) repeating

"Another observes that when stock prices are moving on a daily basis by amounts you would be happy with over months then boom has turned to bubble and it's getting dangerous"


Who would not be happy with 5% in 3 months on their investment?

Not anymore it seems. Now it's at least 20% in 3 months.

Pure greed and irrational overconfidence.

But basic human nature never changes. Nobody likes to lose their winnings. All it takes is for one fund manager to think "hang on, these returns, although superb, are just a bit too good and not sustainable and we better sell out" and it can create an avalanche. And because people are leveraged it'll, or can, create a crash as everybody follows.

This is what I mean by saying it does not matter if people think stocks are overvalued or undervalued. When the returns have been as absurd as they are then a market can crash just on the basic human emotions called greed and fear. That's all it takes.