| Rationality |
| Why things come back into equilibrium over time |
| Appears to vanish, but always returns for fundamental reasons |
| Quote
from Julian Robertson of Tiger Management, May, 2000: "The market goes through these periods of irrationality, where the worst stocks do best. We've been in a period of irrationality for such a long time that it hurts a rational strategy. You have a group of irrational investors carrying the market." This applies to varying degrees in all markets at all times. The trick is to perceive it and react accordingly. |
| See also: Bubbles |
| The investment axiom that is always valid: Caveat Emptor |
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