People like crowds. The bigger the crowd, the more people show up. Small crowd, hardly anybody shows up. -Gallagher
The same is so true for the stock markets….when they are going up and everybody wants to play the game. Many of them are their just because everybody else is their…because being invested in the markets is the in thing. When everybody is buying multi-baggers, why should one stay away and all concepts of risk are thrown out in the dustbin.
The way to make good money in a Bull market-
“Avoid making bad investments – dump 90% of the stock ideas in the bin without even reading them.
The current state of the Equity markets can be summarized by:
There are moments when everything goes well; don’t be frightened, it won’t last. -Jules Renard
Trading at 20 times trailing earnings – the markets scare me but I have not been here long enough to know a lot about it but I know one thing better be scared than lose. They are good ideas still…but I know they will be better ideas once there is no crowd.