“Everyone is a genius in a bull market”
This quote was attributed to Mark Cuban, a billionaire investor and entrepreneur. For context, he was commenting on the 2020 post-COVID bull market, which according to him was spurred by the Federal Reserve rather than fundamentals, that brought in many newbie investors into the trading game. The link to the article is under the Reference heading below.
I am bringing this quote back into this time and day, since we are seeing some assets rising in prices, such as tech equities, properties, precious metals and yes, cryptocurrencies. I have read and heard of some individuals, online and amongst my circle, of them facing boom time in their investment and trading portfolios.
For this, we would congratulate those who had benefitted from the ongoing bull run. Still, we do need to know that it is not just our choices, but also the markets played a part that gave us the happy times that we are experiencing now, so credit must be given to where it is due.
In good times like now, complacency tend to set in as the notion of fast and easy money is prevalent, leading us to develop mental biases, especially overconfidence and hindsight, which gives a false sense of “control” over the markets and thus, becoming geniuses. Seasoned investors and traders may not succumb to these psychological traps, but new investors/traders, and even those seasoned ones who are swept up by the euphoria, may fall into them. Therefore, it is advisable to stay prudent and cautious even in the face of happy days.
Lastly, as in the reason why I added the word “almost” in the phrase, not all investors and traders are having a field day, for they probably went against the bull market and/or made some wrong choices.
Stay calm, stay focused, stay invested.
Reference
A J Horch. Mark Cuban: ‘Everyone is a genius in a bull market’. CNBC. 20 Jul 2020. https://www.cnbc.com/2020/07/20/mark-cuban-everybody-is-a-genius-in-a-bull-market.html (accessed 8 Dec 2024)
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