Markets Bubbles and Irrationality Go Together

Mar 2000

Recently, a leading proponent of internet stocks predicted that 75% of all internet companies will fail, and then he recommended buying a basket of internet stocks—presumably increasing one’s odds of buying three times as many losers as winners… In short, like a heroin addict consuming ever-larger doses of heroin, the tech stock bubble appears to be burgeoning at an increasing rate.  The sooner it ends, the sooner rational investments will shine again.