"There is always a disposition in people’s minds to think the existing conditions will be permanent. When the market is down and dull, it is hard to make people believe that this is the prelude to a period of activity and advance. When prices are up and the country is prosperous, it is always said that while preceding booms have not lasted, there are circumstances connected with this one, which make it unlike its predecessors and give assurance of permanency. The one fact pertaining to all conditions is that they will change."
Those are the words of Charles Dow, from 1902. The emphasis (as always) is mine. Consider the tech bubble, energy prices, or this equities bear market. Aren't there more trend followers than folks that say "this lunacy will end at some point?"
"Be fearful when others are greedy and greedy when others are fearful."
- Warren Buffett (approximate quotation - 2008)
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