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Apr 19
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The four most expensive words in the English language are, ‘This time it’s different.
– Sir John Templeton
Whenever a a new bull market starts we all rush to participate in it. Investors continue to buy higher highs insisting the market will continue to rise higher and higher. The justification for this reasoning is that this time things are different but history shows that whatever goes up eventually comes down.
A perefect example was during the dot com bubble. Some grossly optimistic Economist even went as far as claiming that business cycle were dead and that America was poised on a permanent trend of prosperity but the dot com mania eventually came to an end like all other great bull market.