Human nature drives investors to irrational behavior during euphoric periods from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
Human nature is such that during periods of financial euphoria, investors tend to exhibit irrational behavior. This phenomenon is not new, but has been observed throughout history. The allure of making quick profits often clouds judgment and leads to speculative excesses. In the midst of a market frenzy, individuals tend to abandon reason and become swept up in the collective excitement. The tendency towards irrational exuberance is deeply ingrained in human psychology. As John Kenneth Galbraith notes, investors have an inherent desire to participate in t...
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