Charles Mackay writes in his 1841 classic “Extraordinary Popular Delusions and the Madness of Crowds”: “Everyone imagined that the passion for tulips would last forever, and that the wealthy from every part of the world would send to Holland. Nobles, citizens, farmers, mechanics, seamen, footmen, maid-servants, even chimney-sweepers and old clotheswomen, dabbled in tulips. People of all grades converted their property into cash and invested it in flowers.”
Roughly a century and a half later, the demand for computers and internet was to last forever.
this extrapolation of the present trend into infinite future is often the cause of the great bull markets in history.
As they say, the people change, times change, geographies change, but the human mind behaves quite uniformly. The book “Riding The Roller Coaster – Lessons from financial market cycles we repeatedly forget” is a story of various events that took place in the history of financial markets. More than that, it’s a story of the fickleness of the human mind.
#RidingTheRollercoaster – 196