Uncertainty and speculation are inherent features of financial markets from "summary" of A Short History of Financial Euphoria by John Kenneth Galbraith
To claim that uncertainty and speculation are intrinsic components of financial markets is hardly earth-shattering news. It is a truism that has been acknowledged for centuries by economists, investors, and observers of the financial world. The very nature of financial markets, with their complex and intricate web of interactions, ensures that uncertainty will always be present. This uncertainty stems from a multitude of factors - economic, political, social, and psychological - that can influence the behavior of market participants and the direction of asset prices. Speculation, too, is an inescapable aspect of financial markets. As Galbraith notes, speculation is the act of buying or selling an asset with the expectation of profiting from future price movements. It is a fundamental part of the market ecosystem, as investors constantly seek to anticipate and exploit changes in ma...
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