Do we have the capability to eliminate booms and busts in economic activity? The answer in my judgment is no, because there is no tool to change human nature. Too often people are prone to recurring bouts of optimism and pessimism.
May 30, 2012
“In seeking to avoid the dangers of crowd action, remember that a majority opinion can be sustained. Unanimity of opinion is more vulnerable to a contrary surprise.”
The quote above is from Contravisory founder Ed Noonan’s 10 Rules for Investing. Considering the record amount of anticipation and speculation...