”This Time it’s Different” and 2 Other Investing Fallacies


When investors deal with an unusual event, they often say, ”This time it’s different.” 

It often happens during the formation of bubbles. For example, in 2021, several investors and commentators said we were in a bubble for growth stocks and SPACs. 

Some said it was very similar to the Dotcom crash of 2000. But many investors said, “No, it’s not like that. Back then, companies didn’t have any earnings at all. This time, the companies have good revenues. Sure, the prices might be high, but we’re certainly not in a bubble.”

We were. And it slowly started to burst from mid-2021. One thing to remember is that not all bubbles come to a grinding halt. 

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