Chasing Bubbles

This will end badly, but maybe not today.

It's common to hear about bubbles in financial and real estate markets. Bubbles form when asset classes climb beyond reasonable fundamentals. There's a sense of "This will end badly, but maybe not today." Why do we tell ourselves this? Greed? FOMO? Competition? When justifiable hope turns to wishful thinking, we're no longer building on stable ground. Where else have we moved into wishful thinking? It will end badly. But maybe not today.

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